Ferro chrome prices regained ground as limited availability coupled with demand from overseas buyers have lent support and firmed trade levels.
SteelMint weekly assessment for grade 60% is around INR 64,500-65,000/MT (Ex-Odisha).
Indian producers of Ferro Chrome have raised offers in the domestic market owing to shortage of ferro chrome in the market, and equally supported by strong demand from overseas buyers. A producer source from Odisha stated, “The market is bullish and I see it going higher now. Tight supply is the fundamental along with robust demand.”
SteelMint assessed that ferro chrome supply has fallen sharply with reduced Chrome Ore production in India, so any downside room in ferro chrome prices is expected to be limited in the near future.
Ferro Chrome Export Prices Keeps Firm
The spot price of Indian-origin high carbon ferro chrome (58-60% Cr) was assessed at 69 cents/lb CIF China.
Stainless steel producers typically settle their monthly prices at the end of the preceding month or at the beginning of the month, and spot prices usually take their lead from the adjustments. The market is waiting for major Chinese stainless steelmakers to decide on their purchase prices. However, market participants from China expect Baosteel and other big producers in the region to increase their purchase price for the month, on account of tight spot supply.
Spot price of 60%-grade high-carbon ferro chrome imported into Japan stood at 73 cents/lb CIF Japan.
Few Indian producers also reported of rising inquiries from Europe. Although, no deals could be confirmed Indian producers said that they will not sell below 74 cents/lb CIF Europe.
Price difference continued to remain in the export market as both Chinese and Japanese buyers were asking for lower offers. Indian producers are unwilling to lower their offers as inquires have risen and with the shortage of supply it is expected that prices should increase in the coming week.
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