Indian Ferro Chrome offers escalate as overseas market reflect bullish sentiment. Good demand from China has supported Indian Ferro Chrome in upward correction of its prices.
In line with stronger export market, Indian ferro chrome producers have hiked their offers in the domestic market.
SteelMint assessed weekly ferro chrome grade 60% prices at INR 95,000/MT (Ex-Odisha), up by INR 2,500/MT from last week’s prices. Confidence appeared to be returning to the domestic Ferro Chrome market as trading activity is reported to be strong in the week gone by.
Export Market
Appreciation of Indian Rupee against USD also played a significant role in surging the Ferro Chrome prices. Ferro Chrome exporters increased the prices so as to maintain their revenue margins. Moreover, the escalated freight tariff also supported the hike in Ferro Chrome prices.
Many Chinese mills were also asked to pay premium in order to procure material, mentioned a source.
Earlier, a substantial decrease in Ferro Chrome imports by China led its mills to pay premium due to supply shortage.
Chinese buyers are accepting 108 cents/lb for Indian Ferro Chrome whereas Indian producers are quoting the same at 110 cents/lb and above. However, the offers for Japan and South Korea remain at 111 cents/lb and 108-110 cents/lb.
The current scenario of Indian Ferro Chrome market depicts a sign of positive momentum as it is driven by bullish sentiment and firm Chrome Ore prices in China. Further rise is expected in the ferro chrome prices in the coming days.
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