Ferrochrome prices are estimated to remain firm. China, being the largest importer, is currently oversupplied. Demand from China is showing first signs of moderation, after few months of aggressive buying from the Chinese.
On the domestic front, the allocation of Ferrochrome has been stemmed. Current offer prices for HC Ferro Chrome (60% grade) is around INR 1,10,000/MT (Ex-works Odisha). The point of focus is currently on the exports. HC Ferrochrome export offers for Jan’17 is likely to remain stable. Current offers stand at 127.5 cents/lb, 130 cents/lb and 125 cents/lb for CIF China, Japan and S.Korea respectively.
Large steel mills in China have marginally reduced their January purchase prices for high carbon Ferrochrome this week. In particular, Tsingshan Steel and Taiyuan have lowered their purchase price for the material by RMB 200/MT and RMB 300/MT respectively.
SteelMint assessed that as there has been only a very slight decrease in the purchase price announced by Chinese Steel mills – this will not have much of a bearing on spot Ferrochrome prices.
However, this is indicative of the fact that Chinese Ferrochrome prices will likely stabilize now, and chances of any further uptick in prices is non-existent.
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