Bid level for IDCOL’s tender in tune with offers in the open market along with entire material put on auction awarded to SAIL.
Earlier in Jun’14, IDCOL Ferro Chrome & Alloys had invited tenders for the sale of around 1,600 MT High Carbon Ferro Chrome (HCFC). According to industry sources, bids were received to the levels of INR 68,000 /MT (87 cents/lb) Ex-Works. SteelMint assessed that only a few stainless steel mills had participated in this tender, and SAIL was awarded with 100% of the material.
Bid levels were in line with prices in the open market. As is the case, IDCOL does receives lower bids, as buyers look to compensate for the additional logistical costs and other expenses that are incurred in procuring material from IDCOL.
HC Ferro Chrome in India is currently trading at INR 69,000/MT (88.4 cents/lb) Ex-Works Odisha. No deals were reported so far this week as end-users withdrew purchases on shaky market sentiment. Indian Ferro Chrome producers rely heavily on export sales to China. But, demand from China is very low on account of increased production.
SteelMint assessed that considering a sluggish stainless steel market, the Indian HC Ferro Chrome market is expected to be dull in the near future with most market participants having a pessimistic outlook .
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