High Carbon Ferro Chrome Market was mostly unchanged in India with market participants expecting better prices achievable soon.
Indian High Carbon Ferro Chrome market is firm at INR 72, 000 /MT (Ex-Works Odisha) for 60% Grade, unmoved from last week. The price of HC Ferro Chrome in Raigarh is trading around INR 72,000 – 73,000 /MT. Sources are of the view that prices should rise as the recently concluded Chrome Ore auction received higher bids by 20-30 per cent.
IDCOL AUCTION
IDCOL Ferro Chrome & Alloys Limited had invited tenders for the sale of High Carbon Ferro Chrome (HCFC) of 1100 MT approximately. According to industry sources bids were received to the levels of INR 69,250/MT (USD 1,108 /MT), Ex-Works. SteelMint assessed that quite a few Stainless Steel mills participated in the tender, and actual buying interest was relatively modest as bid levels were much lower as compared to prices in the open market.
OVERSEAS MARKET
Spot import price of lumpy High-Carbon Ferro Chrome imported into Japan from South Africa were at 92-94 cents/lb CIF Japan, unchanged for fifth week, as deals, bids and offers fell in the range. Indian producers indicated sales interest at 90-92 cents/lb CIF Japan.
Domestic spot prices of High Carbon Ferro Chrome (50% basis Cr) in China were steady W-o-W at Yuan 6,850-7,000/MT (85-86.5 cents/lb) on a delivered basis including 17% VAT. The spot price for Indian-origin High Carbon Ferro Chrome (58-60% Cr) at 84-85 cents/lb CIF China, unchanged from a week earlier amid a lack of trading activity.
Indian traders reported that import interest in China were mostly for Indian Ferro Chrome as Indian Ferro Chrome could be delivered at Chinese ports within a month or two compared with two-three months for South African Charge Chrome.
| COST COMPARISON FROM EXPORT REALIZATION TO CHINA | ||
| PARTICULARS | in USD /MT | in INR /MT |
| (a) 84-85 cents /lb CIF China | $ 1,117 | Rs. 69,280 |
| (b) Container Freight and Other Charges @ 2.5 cents/lb | $ 33 | Rs. 2,050 |
| (c) Export Benefits @5.7% | $ 63.67 | Rs. 3,949 |
| Effective Realization=(a-b+c) | $ 1,148 | Rs. 71,179 |
| Exchange Rate: USD 1= INR 62 | ||
Market Participants have varying views on the near term outlook for the Ferro Chrome Market in India. SteelMint learned from some market sources that domestic Ferro Chrome prices were expected to rise in the near term with the upsurge in Chrome Ore Prices. Whereas some market participants are of the view that prices of Ferro Chrome may keep stable with the Rupee depreciating.
Exchange Rate: 1 USD= 62.35
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