Ferro chrome prices weakened further on slack stainless steel market and an increase in supply overhang softened the market’s balance.
Trading remained scant in the ferro chrome market as demand continues to be bearish. Prices fell this week again as the market is generally oversupplied. Currently grade 60% deals have been concluded in the range of INR 60,000-61,000/MT (Ex-Odisha) and INR 63,000/MT (Ex-Raigarh). Producers have been forced to lower prices to attract buying interest amid weak downstream demand.
“Oversupply of the material is not only the main factor that is pushing down prices, but also poor demand from stainless still mills is hitting everyone’s buying appetite. Demand from ferro chrome buyers is also very low when they are making losses on stainless steel,” said a producer from Odisha.
Ferro Chrome Export Market Weakens
The spot import price of Indian 58-62% high-carbon ferro chrome is assessed at 70-71 cents/lb CIF China, down from 72-73 cents/lb a week ago, and South African 48-52% charge chrome was assessed at 70-72 cents/lb CIF China, down from 71-73.50 cents/lb a week ago.
Chinese steelmakers were inactive this week given the October 1-7 National Day public holidays. One Indian producer said he received a bid at 71 cents/lb CIF China and after few rounds of negotiations they have accepted it.
Chinese mills cut purchase volumes last month given the holidays and falling domestic stainless steel demand, and this has put pressure on Indian producers.
Chinese domestic high-carbon ferro chrome for 50% was assessed last week at RMB 6,000-6,150/MT ex-works.
The Japanese spot import price for 60% grade is assessed at 72-73 cents/lb CIF Japan, down from 74-75 cents/lb CIF Japan a week ago.
Most market sources remained skeptical about any potential ferro chrome market recovery and feel that the INR 60,000 level will be breached by next week.
Exchange Rate: USD 1 = INR 65.3
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