Seaborne Ferro Chrome prices remained stable as buying interest visibly receded, leading to a decline in deal values.

Prices of High Carbon Ferro Chrome remain stable in the domestic market due to low demand from stainless steel mill, resulting in low production. The conventional HC Ferro Chrome price remains at 72,000 /MT (Ex- Works Odisha). Production is low in tune with low demand from Stainless steel manufactures, resulting in stability of prices.

The results of the OMC chrome ore auction which was concluded this 31^st October is still awaited.

In the export market an Indian producer is currently offering HC Ferro Chrome to Thailand at 88-89 cents/lb. According to him the demand is low for Ferro Chrome as the Stainless Steel market is not performing well.

Chinese Market

China’s domestic spot prices of high carbon ferrochrome remained firm at 6,850-7,000/ mt (87 cents/lb) delivered with 17% value-added tax. Market participants last week projected ferrochrome prices to relive slightly after two major Chinese stainless steelmakers, lowered purchase prices for November deliveries by Yuan 70/mt and Yuan 50/mt, respectively, from October. But prices have not eased this week due to support from chrome ore prices, which have strengthened then stabilized recently. The support is expected to extend at least until the end of the year.

A trader said ore suppliers would likely find it difficult to get Chinese ferrochrome smelters to accept further price hikes as Chinese ferrochrome prices remain stable. Industry watchers saw little upside potential for Chinese ferrochrome prices due to Chinese domestic production and imports. Chinese domestic high carbon ferrochrome prices have remained at the current level since mid-July.

SteelMint evaluated currently the Ferro chrome market will remain stable for couple of months.  This is probably because there is absence of production for which demand is low, and this could further impact prices in the coming days.