Prices of ferro chrome imported into China remained flat this week as sources waited for the Chinese yuan to stabilize after major devaluation earlier in the week.
SteelMint assessed the Chinese spot import price of Indian-origin 58-62% high carbon ferro chrome at 78.5-79 cents/lb CIF China, and South African-origin 48-52% charge chrome at 77-78 cents/lb CIF China. There was no deal reported.
“Buyers are not making any move as they want to wait for the Chinese yuan to stabilize against the US dollar, following the devaluations earlier in the week,” said one Indian producer source.
Producer sources said spot market participants need to consider domestic Chinese ferro chrome prices, Indian and South African currency moves, and the Chinese stainless steel export trends. Chinese domestic ferro chrome prices may be impacted by rise in chrome ore import price, affected by the weaker Yuan.
The Indian rupee has depreciated against the US dollar this week, trading at INR 65.10 to a USD, compared to INR 63.70 earlier in the week. “If the rupee depreciates like the yuan, lower export prices may be considered,” said a second Indian producer source.
“The weaker yuan will benefit Chinese exports but the question is which markets will be able to absorb more stainless steel supplies from China and to what extent”, said sources. Europe and India have imposed anti-dumping duties on Chinese stainless steel products this year.
In July, US steelmakers filed antidumping duty petitions against Chinese stainless steel products as well as those from seven other countries.
Japanese Market
Ferro chrome trade was thin in Japan this week with only one stainless steelmaker seeking to buy 0-10 mm fines for August-September loading. SteelMint’s assessment of Japanese ferrochrome imports stayed at 81-82 cents/lb CIF, amid an absence of deals.
Indian Domestic Market
High Carbon Ferro chrome market for months has remained largely quiet as demand continues to be very low in the market.
Indian high carbon ferro chrome market condition remains unchanged with trading activity being quiet overall. Current price for 60% grade is settled at around INR 64,000/MT (Ex-Works Odisha) and INR 65,000/MT (Ex-Raigarh), both unchanged W-o-W. OMC chrome ore prices dropped across all grades in the July round of chrome ore e-auction held on 31July’15.
SteelMint learned from market participants that the overall market sentiment is quite negative as prices have remained dormant for a long time.
Exchange Rate : USD 1= INR 65.4
Leave a Reply