The HC Ferro Chrome price is struggling in a bearish market. After gradual declines, now most Ferro Chrome companies are reluctant to cut prices again considering the production cost and profit. Currently, producer sources in India have indicated that there is not much stock in hand , so the overall market continued to operate weakly without significant fluctuations.
Under the circumstance of sluggish stainless steel and successive shutdown or production cut by stainless steel mills, and relatively high level of chrome ore stock, coupled with some mills facing capital restraints, the Ferro Chrome market is showing no apparent sign of improvement and price tends to slip slightly despite of the seemingly narrow decline of RMB 50/MT, in the January Tender Price as released by TISCO. Other leading mills such as Basosteel and Tsingshan etc. are expected to follow suit.
SteelMint assessed Ferro Chrome prices to be lower at INR 69,000/MT (ex-Odisha). However, it is heard that a major producer has concluded a deal at a lower level.
“Demand from overseas has also been disappointing,” said another source referring to the dried-up demand from China. The export offers are assessed at 74-75 cents/lb CIF China, 79 cents/lb CIF Korea and 80 cents/lb CIF Japan. Quotations for Japan and Korea have been raised lately to cope with the appreciating Rupee, however, successful deals are yet to be concluded.
SteelMint assessed that the bearish sentiment is still dominant and the Ferro Chrome market lacks momentum, making the price uptick of Ferro Chrome short of support and transactions also sluggish. In terms of short-term trend, the HC Ferro Chrome market may not have a notable way to turn around, and may continue to operate weakly. In addition, it is necessary to beware that stainless steel mills may demand lower price of Ferro Chrome if
the stainless steel market under-performs.
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