Spot offers of High-Carbon Ferro Chrome slipped this week amid a negative outlook for the Alloy.
The Chinese stainless steel mills have cut their purchase prices by RMB 100/MT M-o-M for Oct’17 owing to diminishing demand for the commodity. Buying interest from China started fading from mid-September, and the Chinese buyers are currently on holiday (National Golden Week).
“Chinese Ferro Chrome demand is no longer robust amid a weaker Chinese Stainless Steel market,” said a producer source justifying the down-trend in the commodity.
SteelMint assessed Ferro Chrome export offers at 98 cents/lb CNF China, whereas some claim it to be below the aforementioned price. In line with the present scenario, offers to Japan and Korea were also forced down at 103 cents/lb and 102 cents/lb.
In the domestic market too, demand for Ferro Chrome is lackluster and Ferro Chrome prices are down by INR 1,500/MT W-o-W. The current price of the commodity in the domestic market is around INR 86,000/MT (Ex-Odisha). However, few small producers were also heard to be offering at a much lower price.
On the future outlook, Ferro Chrome prices are expected to remain under pressure unless Stainless Steel prices in China hold their ground.
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