HC Ferro chrome prices remain unchanged as consumers prefer to make procurement on hand-to-mouth basis, with buyers and sellers unwilling to budge on price ideas.
There has been no improvement in the buying sentiment from Stainless Steel mills, remaining limited to sporadic, small volume sales. As a result, prices remain at the same level.
Currently, 60% grade is being traded at around INR 69,000/MT (ex-works, Odisha) and INR 70,000/MT (ex-Raigarh).
“Demand for Ferro chrome has not been strong. Fortunately, prices have held up better for this material as compared to other bulk alloys. This is predominantly because there is limited material on offer due to shortage of Chrome ore”, explained an Odisha based producer.
SteelMint assessed, with an uptick in demand for Ferro chrome looking unlikely, prices should remain stagnant in the coming weeks.
Chinese Market
Spot price of South African-origin charge chrome (48-52% Cr) stood at 79-80 cents/lb, CIF China; flat W-o-W as buyers have kept expectations unchanged after major Chinese stainless steelmakers rolled over domestic monthly purchase prices.
The spot price of Indian-origin HC Ferro chrome (58-60% Cr) was assessed at 81-82 cents/lb, CIF China. No deals could be confirmed this week, but most buyers and sellers continued to indicate the tradable price in the above range.
While, Chinese domestic spot supply is tight, buyers remained conservative with their expectations for imports, particularly after leading stainless steelmakers in the country have rolled over domestic monthly purchase prices, sources said.
The domestic spot price of 50% Cr Chinese HC Ferro chrome was assessed at RMB 6,400-6,600/MT (equivalent to 78-80.5 cents/lb) including 17% VAT and delivery; up from RMB 6,400-6,500/MT a week ago owing to spot supply tightness in the country. But, sources agreed the domestic spot price is likely to remain stable in near-term following the purchase price rollovers by the mills.
Import demand has also been hit by a depreciating Chinese RMB against the US dollar. Import trading is also expected to be low ahead of the upcoming Chinese New Year holidays (19-25 Feb, 2015).
Japanese Market
Spot price of 60% grade HC Ferro chrome imported into Japan stood at 84-86 cents/lb, CIF Japan; unchanged for the 7th week running.
Although, spot prices of lumps stayed stable at 84-86 cents/lb, CIF Japan for two months, Indian producer and trader sources said the Japanese demand outlook is weak. The Japanese stainless steel exports are facing price competition challenges and the mills are trying to keep raw material costs down.
Exchange Rate : USD 1 = INR 61.77
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