Demand for Indian Ferro Chrome is observed to have softened as Chinese requirement for the month of September is almost fulfilled.
Indian producers have lowered their offers amid limited market activities, while, some have started quoting for October, revealed a source.
“Considering the demand in China, deals are tough to find at quoted offers, hence, we are forced to bring our prices down,” said a producer source referring to decreasing number of inquiries. Moreover, another producer mentioned that they might increase their offers again during October but will likely wait and watch the market closely and only decide on the offer price, after the Chinese holidays.
SteelMint assessed Ferro Chrome offers at around 98 cents/lb CNF China. Similarly, the offers remained stable at 107 cents/lb CNF Japan and 105 cents/lb CNF Korea.
In line with the overseas prices, domestic offers also slipped significantly. Deals are being concluded in the range of INR 87,000-88,000/MT (Ex-Jajpur).
On the future outlook, market participants are unsure if the major Chinese stainless steel mills will reduce the purchase price for October, as supply shortage of Chrome Ore and Charge Chrome from South Africa continues. However, it is to be noted that Stainless Steel prices in China have started coming down, and Ferr Chrome is likely to be under pressure.
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