Indian High Carbon Ferro Chrome market was in a lull as China went on holiday, and nobody was inquiring for any material.
The domestic High Carbon (HC) Ferro Chrome market witnessed muted demand as end-users withdrew on shaky market sentiment. Current offer prices for HC Ferro Chrome (60% grade) is in the range of INR 65,000-70,000/MT (Ex-works Odisha). Indian producer sources said they were closely monitoring Chinese stainless steel-makers’ June purchase prices, as they are relying heavily on export sales. Currently, Indian producers are offering Ferro Chrome to China at 70 cents/lb, which translates to approximately INR 60,000/MT. SteelMint assessed that Ferro Chrome prices are under pressure, and some producers are likely to offer aggressively to clear their stocks.
Chinese Market
Export offers to China from Indian suppliers of HC Ferro Chrome (60% Cr) eased to 70 cents/lb CFR China, in line with the weakened domestic prices in China. There is downward pressure on the Chinese-origin HC Ferro Chrome, due to lower prices of Chrome Ore imported into China, and lack of demand for the alloy.
No deals could be confirmed for Indian origin HC Ferro Chrome, but a major Chinese stainless steel mill showed buying interest at 65 cents/lb. Chinese buyers are happy to wait on the sidelines, as the Chinese Stainless steel mills are expected to announce lower monthly Ferro Chrome tender prices for June, due to weakness in their own sector.
However, Indian Ferro Chrome prices are likely to find some support from the stronger South African Rand and the imminent onset of the country’s expensive winter power tariff, which could halt further South African Ferro chrome price drops.
Other Overseas Markets
Traders from other Asian countries are also not showing any buying interest, as the price is continuously getting lower, and they are expecting prices to fall further in June. The export offer price of HC Ferro Chrome to Korea and Japan was flat at 95 cents/lb CIF Korea and 96 cents/lb CIF Japan. There is an absence of any major inquiries, bids and deals.
OMC Auction
Odisha Mining Corporation (OMC) is set to Auction 44,640 MT Chrome Ore on 2 Jun’17. Market expectation is that the said Company will substantially reduce the base prices, from the previous round of auction – owing to weak demand for Ferro Chrome and sinking prices.
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