Indian producers of Ferro Chrome have been forced to cut their domestic offer prices after export sales setback.
The domestic ferro chrome market has trended down on very low volume deals concluded in the export market, as selling pressure grows on ferro chrome producers, having more material to sell in the domestic market.
SteelMint assessed ferro chrome price levels reduced and being offered in the range of INR 84,000-85,000/MT (Ex-Odisha).
Ferro chrome and chrome ore prices continued to fall in China, as the country’s stainless steel market weakened, and as major Chinese Stainless Steel mills are yet to announce Ferro chrome tender prices for May, spreading bearish sentiment and panic among Ferro chrome producers and suppliers globally.
SteelMint learned from market sources that the delay in announcement by Chinese stainless steelmakers is making the Chinese traders to sit on the sidelines. There is a growing buzz that there will be a sharp reduction in tender prices. Moreover, consumption in China is expected to be lower as many Stainless mills have gone for or are expected to be shut for maintenance, in line with poor Stainless Steel prices.
Indian producers are yet to lower offers in the export market as buyers are not booking anything yet till mills don’t announce tender prices.
The weakness in China has affected demand elsewhere in Asia. In Japan and South Korea too trade remained very thin in the week gone by, as buy-side participants sought clearer direction. The spot price of Indian origin high carbon ferro chrome (60% grade) was assessed at 107 cents/lb CIF Japan and 106 cents/lb CIF Korea.
SteelMint learned that most market participants hold a pessimistic outlook towards the future market trend.
Leave a Reply