China’s Baosteel, one of the major players in the global stainless steel industry, has raised the purchase price of high carbon ferro chrome by 1500 Yuan (USD 220) M-o-M to set it at 7,000 Yuan (USD 1030) per tonne for Jul’17. A rise in purchase price was expected, but not such a sharp hike. However, the same can be attributed to the tight supply scenario and rising Chrome Ore prices in China, which in turn increased the spot prices of high carbon Ferro Chrome.
Most market sources are of the view, that the primary reason for such a surge in prices of ferro chrome is due to hike in production cost of the same. Furthermore, it has been observed that the Chinese were keen to buy Ferro Chrome from India, and were ready to pay a premium for prompt deliveries, amid higher price levels of chrome ore and rising Stainless Steel prices in China.
Ferro Chrome demand is expected to be firm and other major Stainless Steel mills are expected to follow suit and disclose their elevated purchase prices soon.
Leave a Reply