Offer prices of high-carbon ferro chrome from India were stable this week in thin trade, as buyers withdrew in the hope of further declines in the coming weeks.
Only a few producers were keen to make spot sales, as some had cut production and had less material to offer. Also some producers had rejected bids they found to be too low.
SteelMint assessed the spot price of South African 48-52% charge chrome and Indian 58-60% ferro chrome at 69 cents/lb CIF China, flat for a second week running.
A Chinese mill bought more than 3,000 MT at 69.5 cents/lb CIF China, November loading from India, said one producer.
Traders said bids at 68 cents/lb CIF China would be rejected, as production could not be sustained at such levels. They were hopeful more Chinese buyers would come into the spot market in late November, as domestic ferro chrome supplies were limited.
This week, China’s Taiyuan Iron & Steel reportedly reduced November ferro chrome purchase prices by Yuan 100 from the previous month to RMB 5,700/MT (68 cents/lb excluding Chinese value added tax and port charges).
The Taiyuan price news dampened the mood that had turned upbeat last week following the news of Baosteel rolling over its November purchase price at RMB 6,000/MT.
“People are buying hand-to-mouth as prices are unpredictable,” said a producer source from India.
In Japan, Indian offers were at around 71-72 cents/lb CIF Japan for 60% ferro chrome. There was no deal done amid lack of buying interest.
Indian Ferro Chrome Prices Steady; Buying Still Slow
A clear lack of buying interest from buyers hampered the ferro chrome market.
Buying interest continued to dwindle, tracking waning steel performance and a belief downstream fundamentals were unlikely to recover anytime soon. Currently, 60% grade is being offered at around INR 59,000-59,500/MT (ex-works Odisha).
“The market is seeing very little buying interest as demand on the steel side is so poor; the stainless steel mills are making heavy losses, so it’s natural that raw material prices will also adjust downward. Prices are unchanged for the past two weeks but could come down further,” stated a producer source from Odisha.
Most participants were doubtful of a price rebound in the near-term in view of weak prices and poor steel demand.
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