Indian producers of Ferro chrome have raised offers in the domestic market on the grounds of weakened Rupee and supply tightness due to shortage of Chrome ore.
Domestic price for High Carbon Ferro chrome has witnessed a slight uptick from last week. The mainstream price of HC Ferro chrome 60% min is ranging from INR 69,000-69,500 /MT (ex-Works Odisha). SteelMint learned from market sources that there has been an increase in offers from producers this week, and end-users have started to react to these increased prices, believing that prices may further increase in the domestic market due to devalued currency and shortage of material. The price of HC Ferro chrome in Raigarh stands at INR 70,000 /MT.
Chinese Market
Spot prices of South African-origin Charge chrome (48-52% Cr) stood at 78- 79 cents/lb, CIF China. Prices have come down W-o-W as the South African Rand has depreciated prompting lower offers from the country. Following lower offers from South Africa, Indian producers have also had to lowered their offers and Indian-origin High Carbon Ferro chrome (58-60% Cr)is being offered at 79-80 cents/lb CIF, China. No deals could be confirmed this week.
Baosteel and Jiuquan Iron & Steel have rolled over purchase price for the next month.
Trading was quiet as buyers were holding back and waiting for major Chinese stainless mills to announce January domestic Ferro chrome purchase prices. Buyers were also holding back on import purchases as the recent depreciation of the Chinese RMB against USDhas made imports costlier, sources said.
Indian producers may be amenable to selling at lower prices as Rupee has also depreciated against US dollar. 79 cents/lb, CIF has become a good price for Indian sellers, assessed SteelMint.
Offers from India were scant as supply remained tight amid production cuts due to shortage of Chrome ore.
Japanese Market
The spot price of imported HC Ferro chrome stood at 86-88 cents/lb, CIF Japan; unchanged from last week. One Indian producer was offering material at 86 cents/lb, CIF Japan to a Japanese end-user. No other offers, bids or deals were heard this week amid a typical year-end lull. Japanese steelmakers plan to cut output in the first quarter of 2015 amid slow domestic steel demand, which has dampened the spot market further.
Exchange Rate: USD 1 = INR 63.4
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