Asian buyers are seeking High Carbon Ferro Chrome at much lower prices ahead of the Lunar New Year, while offer prices from Indian producers are holding stable.
The HC Ferro Chrome market continued to show slight signs of weakness amid low levels of spot market activity to date in 2017. The near-term price outlook was not positive, as the Chinese buyers are showing buying indications at prices much lower than what is currently being offered by Indian producers.
China’s Tsingshan, one of the major players in the global stainless steel industry, has reduced the purchase price of high carbon ferro chrome by 800 Yuan M-o-M to set it at 9,595 Yuan per tonne for Feb’17. Other Chinese steel mills are expected to follow suit, and also lower their purchase price aggressively for Feb’17.
But the downside is limited as chrome ore prices in China remain high and after the Chinese New Year holiday, Chinese Ferro Chrome producers are unlikely to lower offer prices, after the high-cost chrome ore shipments arrive over the next two months.
Export offers for India-origin High Carbon Ferro Chrome (60% Cr) was pegged back at 115 cents/lb CFR China, down from 117 cents/lb CFR China a week ago amid sluggish demand. Offers were heard at 115 cents/lb CFR this week, but several industry participants indicated 110-112 cents/lb as the tradable range.
Similarly, The spot price of high-carbon lumpy Ferro Chrome exported to Japan weakened W-o-W at 123 cents/lb CIF Japan owing to limited spot demand and supply overhang. However, ferro chrome offers to South Korea, continued to flatline at 120 cents/lb CIF South Korea, on an absence of reported bids or deals.
SteelMint learned that most market participants hold a pessimistic outlook towards the future Ferro Chrome market trend as the Chinese demand has started to wane.
Indian producers of Ferro Chrome cut offers to solicit trade
Domestic offer price for High Carbon Ferro Chrome is down from last week. The mainstream price of HC Ferro Chrome 60% min. is around INR 1,00,000 /MT (Ex-Works Odisha).
A producer source remarked that the prices are under pressure as some new producers that entered the market when prices soared, are now offering aggressively to clear their stock.
There is big gap between the price ideas of buyers and sellers in India, as the Stainless Steel producers are looking to buy Ferro Chrome for much lower than what is being offered at by the major Indian producers.
SteelMint assessed that a lack of trading activity could further impact Ferro Chrome pricing negatively.
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