Ferro chrome prices remained unchanged this week, as demand remained lackluster on the back of weak stainless steel market.
Ferro chrome prices in the domestic market showed no improvement as trade continued to be limited. Increased supply is also one of the reason for which prices are not increasing. “There’s no business being done, so it’s difficult to say whether prices will increase or not. The lack of interest is not surprising given the lack of end-user demand from steel mills,” stated a producer from Odisha.
SteelMint assessed grade 60% prices at around INR 58,000-58,500/MT (Ex-Odisha), unchanged W-o-W.
Several market participants see some room for Ferro chrome prices to fall on additional cuts in stainless steel output.
Scarce Buyers for Ferro Chrome, Thin Trading Pressures Prices
Spot prices for high-carbon ferro chrome fell this week, in thin trading with limited buyers, according to market sources.
There were no deals reported as Chinese market participants waited for Baosteel’s announcement of its January ferro chrome purchase price for direction. The December price was RMB 5,620/MT (66 cents/lb), excluding local taxes.
A few Japanese and South Korean traders were in the market for small volumes, while others focused on January-March contract talks, said producers. Deals have not closed yet, they said.
The lack of activity and, for those selling into China, the yuan devaluation was pulling down sentiment.
SteelMint assessed China’s 48-52% charge chrome at 63-65 cents/lb CIF China, down from 64-67 cents/lb a week ago.
Chinese buyers expressed interest at 62-63 cents/lb, the current domestic price levels. But there were no genuine inquiries.
The 58-60% grade material was assessed at 64 cents/lb CIF China, down from 64-64.5 cents/lb CIF a week ago.
“Within India prices are 66-67 cents/lb ex-plant. As a result, Indian producers are not willing to lower offers further, and I also believe that Chinese steel mills will increase their purchasing volume to rebuild stocks before the Spring festival, ” said a trader from India.
The Japanese spot import price was assessed at 66-67 cents/lb CIF Japan , down from 68 cents/lb CIF Japan.
An offer was reported at 67 cents/lb CIF main South Korean port for 10-50-mm lump with minimum 60% chrome.
Exchange Rate : USD 1 = INR 66.8
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