Indian Ferro Chrome prices remained unchanged as demand fails to pick up and high Chrome Ore prices restricted prices from coming down.
Despite rising Chrome Ore prices, weak demand has prompted the Ferro Chrome producers to hold their offers at current levels.
SteelMint assessed Ferro Chrome prices at around INR 85,000/MT (ex-Odisha). Although, few producers were heard to be offering at higher levels for small tonnages.
Ferro Chrome demand from China is assessed to be weak as well. However, diminishing Ore volume at Chinese ports has prompted the country to import more, thereby resulting in Chrome Ore prices moving upwards. South African UG2 Chrome Ore price is at around USD 175/MT CIF China, up by $5 from last week.
“Chrome Ore demand from Chinese port has supported the global ore prices,” said a source. However, buyers have sufficient inventory as they purchased prior to the holidays, he further added.
However, contradicting the same, another source said that an anticipation of the implementation of environmental regulation has created an artificial demand wherein most of the ore buyers are restocking and hence, ore prices are rising.
Market participants are on wait-and-watch mode as they expect the tender price by major steel mills to either reduce or roll over for November shipment.
SteelMint learned that TISCO (Taiyuan Iron & Steel Corporation) has already reduced its November tender price by RMB 100/MT while others are yet to release their purchase price.
Ferro Chrome export offers are assessed at 84 cents/lb CIF China, 86 cents/lb CIF Korea and 87 cents/lb CIF Japan.
On the future outlook, market participants are reflecting mixed sentiment wherein some believe that weak demand will anchor the Ferro Chrome prices while others are of the view that expensive ore will support the alloy prices.
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