Indian Ferro Chrome prices have stabilized as spot requirement from China has come to a grinding halt.
Chinese Stainless steel mills have fulfilled their buying requirement for September, and are not in the market for more material. The sudden softening of demand is weighing down on Indian Ferro Chrome offers. However, market participants are of the view that prices could rise again in October, due to lower imports from South Africa arising from logistical constraints there.
Indian offers remain unchanged at 102 cents/lb CNF China, while buyers from China are showing no keenness in booking the Alloy. Demand from Japan and South Korea also remains lackluster as offers remain unchanged at 107 cents/lb and 105 cents/lb respectively. Japanese and Korean buyers are waiting for the next quarterly benchmark prices and are not much active in the spot market.
Domestic Ferro Chrome offers edges up amid GOI’s initiative to boost stainless steel industry in India. “We are getting better value in the domestic market than overseas,” said a producer referring to better realization value in India.
A recent imposition of a countervailing duty on Chinese Flat Stainless steel products has significantly supported the domestic industry.
SteelMint assessed the Ferro Chrome prices at around INR 90,000/MT (Ex-Odisha). However, few producers are quoting higher and a few deals were also concluded at lower prices in the week gone by.
On the future outlook, the momentum witnessed in Ferro Chrome export offers has cooled down, but rising Chrome Ore prices in China coupled with limited Chinese Ferro Chrome production is likely to restrict any sharp correction in Ferro Chrome prices.
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