India: HC Ferro Chrome offers at INR 68,500/MT Ex-Works Odisha

High Carbon (HC) Ferro Chrome market still sluggish and prices have declined marginally owing to poor demand and general absence of buying from participants.

Domestic Ferro Chrome prices in Jajpur have come down to garner some buying interest. Currently, 60% grade is being traded at around INR 68,500/MT (Ex-Works Odisha) and INR 69,000/MT (Ex-Raigarh). Trading activities have been low for many months in the domestic market and so prices have remained at low levels.

Chinese Market

Spot prices of India-origin HC Ferro Chrome (58-60% Cr) and South Africa origin charge Chrome (48-52% Cr) were at 82-84 cents/lb CIF China and 81-82 cents/lb CIF China respectively on Friday amid thin buying interest.

Sources said that there were few offers or enquiries.

Two Indian producers said that they had not offered or sold to the Chinese spot market in recent weeks. Supply was limited on shortage of Chrome ore in the country and also prices were unattractive in China relative to other markets, they added further. Some sellers also refrained from offering this week because of pending announcement of domestic purchase price.

Most buyers’ price ideas — though not firm bids — remained below 80 cents/lb CIF for both Ferro Chrome and charge Chrome, but suppliers were unwilling to lower selling prices to the extent. Import demand was further crimped by the mid-year owing to tight liquidity situation in China.

“Price is an issue but the bigger issue now is liquidity. Most mills are not in the position to open LCs (letter of credits),” said an Indian producer source.

Domestic spot prices of 50% Cr Chinese HC Ferro Chrome were at RMB 6,400-6,600/MT (equivalent to 79-81 cents/lb).

Japanese Market

The spot price Ferro Chrome imported into Japan at 90-92 cents/lb CIF Japan; unchanged from last week owing to an absence of reported deals, offers or bids.

Spot trade is expected to stay thin until the end of the month, sources said.

SteelMint assessed that Ferro Chrome producers are waiting for some kind of trigger to push up prices as the market has been dull for a long time. Although, supported by higher Chrome ore prices, the Ferro Chrome market is crippled with very weak demand.

Exchange Rate: USD 1= INR 59.74