Ferro Chrome prices marched northwards owing to a high demand of the commodity in China coupled with elevated chrome ore prices.
Tracking massive gains earlier in the Chinese Stainless Steel market, inquiries regarding Indian Ferro Chrome have increased from the region. An upward correction has been recorded in Ferro Chrome prices on bullish sentiment regarding imports from China. Chinese Ferro Chrome imports are likely to continue as the environmental checks have reduced production in the said country. Moreover, dependence on imports from India is likely to stay firm on higher prices and lower tonnages being shipped from South Africa in line with reduced production in South Africa during the winter months.
Increasing demand in the global market has translated to a rise in the domestic market as well. Ferro Chrome grade 60% price increased by around INR 3,500/MT in a week’s time and is currently being traded in the range of INR 86,000-87,000/MT (Ex-Works, Odisha).
On the global front, the prices have also increased and the Indian producers have set their offers at around 103 cents/lb CFR China, which is expected to find acceptance. However, deals were heard to be concluded at around 102 cents/lb CNF China.
In line with the increased prices of Ferro chrome in China, Indian producers raised their offers for South Korea and Japan. The current offers are around 105 cents/lb and 107 cents/lb CNF South Korea and Japan respectively. However, buyers from South Korea and Japan have retreated to the sidelines revealed a producer source, and are waiting for prices to settle lower.
Most market participants have stable to bullish expectations for the month of September, as the Stainless Steel prices in China is still firm and demand for Ferro Chrome is to stay intact.
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