Spot prices of High-Carbon Ferro Chrome slipped this week amid weak Chinese demand for import.
The Chinese Ferro Chrome producers cut their offers and that has reduced the dependency on imports by Chinese Stainless steel mills.
Currently, Ferro Chrome is being offered at around 110 cents/lb CIF China but the buyers are demanding an offer of about 106 cents/lb.
Prices for Japan and S. Korea also went down after a marginal increase last week. Indian producers are offering at around 115 cents/lb CIF Japan and 114 cents/lb CIF S.Korea respectively.
In the domestic market, Ferro Chrome is being traded in the range of INR 96,000-97,000/MT (Ex-Odisha) for bulk quantities.
The strengthening of INR against USD has decreased the revenue margin for the exporters, forcing their attention back to the domestic market.
On the future outlook, market participants remained worried over the market situation, as they think that prices could be poised for a substantial drop, since demand in the export as well in the domestic market is low, and export realizations are set to be substantially lower than the domestic market.
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