Ferro chrome prices in India are unlikely to rise in the near future and most producers have opted to cut production levels in sight of poor demand.
Indian High Carbon Ferro chrome market condition remains unchanged with trading activities remaining dull. Current price for 60% grade is settled at around INR 69, 500/MT (ex-works Odisha) and INR 70,000/MT (ex-Raigarh).
“Steel demand is so bad and the market is already on a downtrend with no visible recovery so buying is weak,” stated a Odisha based producer.
SteelMint assessed the short-term expectation is of prices to remain under pressure and any uptick seems unlikely in this month. Market participants reported market will remain weak with low Ferro chrome demand worldwide.
Chinese Domestic Market
Domestic spot prices of 50% Cr Chinese HC Ferro chrome were unchanged W-o-W at RMB 6,200-6,400/MT (equivalent to 76-79 cents/lb), supported by tight supply and as the market awaited major mills December bids.
Ferro chrome producers in Inner Mongolia halted production between late October and early-November to reduce pollution during the APEC summit in Beijing. While, most have restarted, spot supply remained tight, sources said.
Some Ferro chrome producers in southern China have also stopped output amid low Ferro chrome prices and after recent increase in power rates in south following the start of dry season.
Some sources believed leading stainless producers may lift December bids by RMB 50/MT amid tight supply.While, others see limited upside owing to weak stainless demand.
The steelmakers — Shanxi Taigang Stainless Steel, Baosteel and Jiuquan Iron & Steel — had earlier rolled over November purchase prices from October. The producers are expected to decide December prices starting next week.
No deals could be confirmed for Indian origin material.
Exchange Rate: USD 1 = INR 61.92
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