Indian producers of Ferro Chrome have raised offers in the domestic market owing to the weakened Rupee (Indian Rupee fell to an all-time low of 65.56/USD); making exports a more lucrative option for the manufacturers.
Domestic offer price for High Carbon Ferro Chrome has witnessed a slight uptick from last week. The mainstream price of HC Ferro Chrome 60% min. is ranging from Rs 65,000 – 66,000/MT (Ex-Works Odisha). A trader source remarked that there has been an increase in offers from producers this week, and end-users have started to react to these increased prices, believing that prices may further increase in the domestic market due to the devalued currency. The price of HC Ferro Chrome in Raigarh stands at Rs 67,000/MT. FACOR (Ferro Alloys Corporation Limited) is offering Ferro Chrome (60% Grade) at Rs 67,500 (Ex-Plant).
Chinese Market
Export offers to China from Indian suppliers of HC Ferro Chrome (58-60% Cr, 6-8% C) eased to 84-85 cents/lb CFR China, down from 85-86 cents/lb in the previous week, due to weaker domestic Chinese prices. However, no deals could be confirmed for Indian origin HC Ferro Chrome. Meanwhile, Chinese domestic Stainless Steel prices also surged on higher Nickel prices and increased buying interest, and hence Ferro Chrome suppliers may look to raise offers as well, noted sources.
This week, major Steel mills in China like Baosteel, Tsingshan Group and JISCO have also declared their purchasing price for HC Ferro Chrome for September deliveries, which is unchanged from the previous month. However, the country's largest Stainless Steelmaker Shanxi Taigang Stainless Steel, cut its Ferro Chrome purchase price for September deliveries by Yuan 50/MT ($ 8/MT).
Other Overseas Markets
The spot price of HC Ferro Chrome exported to Korea was down at 86 cents/lb CIF Korea and a deal was heard to be concluded from a Company in Vizag. Demand from overseas buyers remain scant and there is an absence of any major inquiries, bids and deals.
IDCOL Auction
Earlier in the month, IDCOL Ferro Chrome & Alloys Limited had invited tenders for the sale of High Carbon Ferro Chrome (HCFC) of 1410 MT approximately. According to industry sources, bids were received to the levels of Rs 65,888/MT ($1011 /MT),Ex-Works. SteelMint assessed that quite a few Stainless Steel mills participated in the tender, and actual buying interest was relatively strong as bid levels were quite high as compared to prices in the open market.
Market participants have varying views on the outlook for the Ferro Chrome market. Some market observers had expected prices to ease slightly due to the decline in Taigang's price. Others remained bullish stating an increase in Ferro Chrome prices cannot be ruled out in the near-term due to the recent surge in Stainless Steel prices.
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