Indian producers of Ferro Chrome cut offers to solicit trade as Chinese buyers looked for lower offers
Domestic offer price for High Carbon Ferro Chrome is unchanged from last week. The mainstream price of HC Ferro Chrome 60% min. is ranging in between Rs 64,000 – 65,000/MT (Ex-Works Odisha).
A producer source remarked that the prices are under pressure as some producers are offering aggressively to clear their stock. The price of HC Ferro Chrome in Raigarh stands at Rs 66,000/MT. FACOR (Ferro Alloys Corporation Limited) is offering HC Ferro Chrome (60% Grade) at Rs 67,000 (Ex-Plant). When questioned regarding the high offers when other players are offering at much lower rates, a Company official said, “Buyers looking for better quality are ready to pay a premium for our material.”
Chinese Market
Export offers to China from Indian suppliers of HC Ferro Chrome (58-60% Cr, 6-8% C) eased to 85-86 cents/lb CFR China, down from 85-87 cents/lb in the previous week, in line with the weakened domestic prices in China. There is downward pressure on the Chinese origin HC Ferro Chrome, due to lower prices of Chrome Ore imported into China and lack of demand for the alloy.
Last week major Steel mills in China like Baosteel, Shanxi Taigang Stainless Steel and Jiuquan Iron and Steel also lowered their purchasing price for HC Ferro Chrome by Yuan 50-100/MT.
Other Overseas Markets
The spot price of HC Ferro Chrome exported to Korea was flat at 88-89 cents/lb CFR Korea and a deal was heard to be concluded from Vizag with a Company in Iran at 91 cents/lb for 3-4 containers. Demand from overseas buyers remain scant and there is an absence of any major inquiries, bids and deals.
OMC Auction
The recently concluded Chrome Ore E-auction by Odisha Mining Corporation (OMC) received a mixed response, as high grade Ore received lower bids and low grade Ore received higher bids, compared with the last auction, owing to weak demand for Ferro Chrome.
Andhra Power Scenario
The state of Andhra Pradesh which had long been facing power-cuts has resolved the problem now. However, the State Electricity Board has announced that Plants under the CMD (Contract Maximum Demand) agreement will have to pay electricity charges for 80% of the allocated units, even if underused. This directive has resulted in a spurt in production activities which could further push prices lower unless the demand picks up.
On the future trend, prices are expected to remain under pressure and the possibility of seeing a rebound in prices in the next three to four weeks remains uncertain.
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