Ferro chrome export prices have gained substantially as demand from Chinese importers increased and attempts to raise prices were not resisted by Chinese buyers.
After persistent low demand for Indian Ferro Chrome, inquiries from Chinese buyers seem to have returned triggering bullish sentiment among Indian producers.
SteelMint assessed 58-60% high-carbon Ferro Chrome at 74-75 cents/lb CIF China. However, Chinese buyers are negotiating at 73 cents/lb, while, Indian producers are quoting at 75 cents/lb.
SteelMint assessed that the prime reason for same is unacceptability of low price by Chinese Ferro Chrome producers as their margins were not met. Moreover, winter season in South Africa has also affected production and supply of Charge Chrome, limiting exports to China, creating pressure of Chinese stainless steel producers to divert to India for their requirement.
In line with high demand from China, the Indian producers also gained enough confidence to raise their price in domestic market at INR 65,000/MT.
“Such a change is quite surprising to us, but quite a welcome one,” remarked a producer source referring to such a huge uptick in such a short time.
Market participants are bullish on increasing demand from China as the market awaits tender prices to be released by major Stainless Steel mills in China for July’17.
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