Ferro Chrome prices have found support at current levels in the domestic market. While, demand from overseas buyers remains low.
Indian HC Ferro Chrome market remains flat. Currently, 60% grade is being traded at around INR 69,000/MT (ex-works Odisha) and INR 71,000/MT (ex-Raigarh). No substantial price movement was seen in the Indian market, with sources continuing to credit the lack of transaction as the main reason behind the flat price trend. Demand from stainless steelmakers is presently low owing to heavy rains in Odisha. However, market participants are expecting upward price movement by mid-September.
Chinese Market
The spot prices of Indian origin HC Ferro Chrome (58-60% Cr) stood at 82-84 cents/lb CIF China and South African origin charge Chrome (48-52% Cr) at 81-82 cents/lb CIF China. Both were flat W-o-W owing to lack of deals, as a wide gap persisted between buyers & sellers. No deals were confirmed this week.
Two Indian producers reported of inquiries from Chinese buyers, who indicated their buy ideas at 81-82 cents/lb CIF this week. No deals were done, as Indian producers were seeking to sell the material not lower than 85 cents/lb CIF. While, some said they could sell to an equivalent of 87 cents/lb in the Indian domestic market.
Sellers are unwilling to reduce offers on the ground of high Chrome ore prices in India, and also have limited spot material for sale owing to production cut.
Chinese buyers are also not in hurry to purchase imported material because of low demand in summer, with expectations of further price correction in the domestic market and ample supply of low-priced domestic material.
“Chinese buyers do not have plans to buy material anytime soon. If they need material, they would prefer to purchase domestically,” said an Indian producer.
Domestic spot prices of 50% Cr Chinese HC Ferro Chrome remain flat at Yuan 6,300-6,400/ MT W-o-W (equivalent to 77.5-79 cents/lb), delivered with 17% VAT.
Exchange Rate: USD 1 = INR 60.45
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