High Carbon Ferro chrome market remains mostly calm this week as there is uptick in prices along with steady demand.
HC Ferro chrome prices moved up slightly from last week as there was increase in demand from end-users. Currently, 60% grade is being traded at around INR 70,500/MT (ex-works Odisha) and INR 71,000-71,500/MT (ex-Raigarh).
India’s production cost has risen as the Odisha government has raised the royalty fee paid to the government for Chrome ore feedstock effective from 01 Sep, 2014 to 15% from the previous 10%.
But, India’s exports remain stalled because of weak Chinese demand. However, South African producers are continuing aggressive sales to China, as the weaker South African rand against US dollar has lowered their breakeven point.
Chinese Market
SteelMint assessed that the spot prices of Indian origin HC Ferro chrome (58-60% Cr) at 82-84 cents/lb CIF China and South African origin charge chrome (48-52% Cr) at 81-82 cents/lb CIF China; both flat W-o-W amid lack of spot deals & offers.
“We are able to sell at 86-90 cents/lb CIF to other market. Suppliers don’t need to lower prices to this level,” said an Indian producer source.
A Hong Kong-based importer said, “The price would be acceptable for charge chrome suppliers under pressure to sell. The cost effective ones can accept this.”
Some of China’s largest stainless steelmakers are expected to set their October domestic purchase prices by the end of this month.
Industry participants said that there were few inquiries from Chinese buyers for imported material this week. Buying indications no firm bids for Indian Ferro Chrome were heard at 82 cents/lb CIF or lower.
Domestic spot prices of 50% Cr Chinese HC Ferro chrome are flat W-o-W at RMB 6,250-6,400/MT (equivalent to 77-79 cents/lb).
“The fourth quarter prospect does not appear good as everyone is in full production. There is no seasonal rise in demand although Europeans are supposed to be back from summer holidays. ,” said one Indian producer source.
Japanese Market
SteelMint assessed that the Japanese spot Ferro chrome imports stood at 88-90 cents/
lb CIF; down from 89-91 cents/lb last week, ahead of fourth quarter contract price talks expected to start in the coming weeks.
Sellers said deals were possible at 89-90 cents/lb CIF Japan. There was no deal reported for 10-100 mm sized lumpy material with 60% minimum chrome, 2-4% silicon and 8-9% carbon content.
A Japanese trader said he was offered 87 cents/lb CIF Japan, and said his price idea was below that as there was no end-user interest for higher prices.
Meanwhile, one Indian producer source said that his price idea was 90 cents/lb CIF Japan, but he did not offer because of an absence of inquiries.
Japanese spot import prices have been swinging up and down in a narrow range of 87-91 cents/lb in the past month, and this was reflecting nervous market direction, sources said. “Outside of India, there is only bad news,” said one Indian producer source.
Q4 talks
The fourth quarter contract price will be negotiated between South African producer, Glencore and Japanese stainless steelmaker, Nippon Steel & Sumikin Stainless Steel Corp. The talks, expected to start in the coming weeks, are for South African charge chrome with 50-55% chrome content, around 3% silicon and 8% carbon — to be exported into Japan in the fourth quarter.
Exchange Rate: USD 1= INR 60.95
Leave a Reply