Confusion over Ferro Chrome offers came to an end with a price rollover by major Chinese stainless steel mills, leaving prices unchanged.
The purchase price set by Chinese mills in Aug’17 did not fall in line with expectation, hence, bringing in a positive sentiment fin the market or Indian producers to capitalize. Previously, it was anticipated by most that purchase prices set by Chinese Stainless Steel mills could move down slightly, but to the contrary it has been rolled over.
“Though the prices remains unchanged as of now, downward correction in Ferro Chrome prices is non-existent,” said a producer source reflecting a positive sentiment amid the commodity’s present trend. SteelMint assessed the current offers at around 80 cents/lb (CNF China), 88 cent/lb (CNF Japan) and 87 cents/lb (CNF South Korea).
In line with overseas price, domestic offers also remained unchanged at INR 67,000/MT (Ex-Odisha).
On the future outlook, most market participants are of view that there is a higher probability of an upward correction in Ferro Chrome offers finding acceptance. However, higher Ferro Chrome prices could trigger a rise in Chinese production, as they are well stocked with Chrome Ore.
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