High Carbon (HC) Ferro Chrome prices unaltered as end-users demand remain at low level.
Indian HC Ferro Chrome market is steady at INR 69,500/MT (Ex-Works Odisha) and INR 70,000/MT (Ex-Raigarh) for 60% grade, both unchanged from last few months. Due to the low demand, most producers have cut down their production levels. Most market participants are holding a cautious approach, and it is expected that the market would not change much in the near future.
Earlier in the month, India’s state-owned Odisha Mining Corporation had put 65,000 MT of Chrome ore on sale through e-auction. Few sources reported that price levels at which the ore has been awarded are higher by 15-20% than the May auction. Although, award level could not be confirmed with OMC as on Tuesday, it is to be seen whether Ferro Chrome prices increase in line with higher Chrome ore, as demand for Ferro Chrome in India is very poor.
Chinese Market
The spot prices of Indian-origin HC Ferro Chrome (58-60% Cr) and South African-origin charge Chrome (48-52% Cr) at 82-84 cents/lb CIF China and 81-82 cents/lb CIF China respectively, both unchanged W-o-W on limited deals & offers in the market.
Import buying interest remained thin as Chinese domestic prices continued to weaken, making imports unattractive for local users.
Most sources said that Chinese users were only interested in buying at less than 80 cents/lb CIF, though there were no firm bids. Meanwhile, Suppliers were still unwilling to decline prices below the 80 cents/lb level.
[su_quote]Most sources also dismissed the price on higher Chrome ore in India, limited Ferro Chrome for spot sales on Chrome ore tightness, and stronger demand & prices in other export markets outside China. “Other markets can fetch higher prices than China, there is no need for Indian suppliers to sell the material to China at 81 cents/lb CIF,” said an Indian producer.[/su_quote]
An official, who is an Indian producer, estimated that based on current higher Chrome ore prices, the lowest selling prices for most suppliers would have to be 86 cents/lb CIF. He did not make any deals or offers this week. Domestic spot prices of 50% Cr Chinese HC Ferro Chrome were at RMB 6,400-6,600/MT (equivalent to 79-81 cents/lb), down from RMB 6,500-6,700/MT W-o-W delivered with 17% VAT.
Other Overseas Market
The spot price of HC Ferro Chrome imported into Japan stood at 91-93 cents/lb CIF, unchanged W-o-W in thin trade.
A South Korean mill issued a buy tender for 100 MT delivered in July. However, mills in Japan & Taiwan were seeking cargoes of large quantities, sources said.
An Indian producer said he was not offering spot this week, but his price idea was atleast 93 cents/lb CIF Japan. Offers were reported at 92 cents/lb CIF to Taiwan and 88 cents/lb CIF Busan to South Korea.
Meanwhile, the Q3 demand outlook in the US & Europe has improved. An Indian producer said that demand in Europe has improved so much that his company’s sales were larger than volumes heading for Japan & South Korea combined. China remained the company’s largest customer, he added.
SteelMint learned from sources that those expecting a price hike cite higher raw material costs in not just South Africa but India too. Also, one major Indian Ferro Chrome producer to run out of Chrome ore stocks in 15-20 days. SteelMint assessed that Ferro Chrome prices that have stayed depressed domestically as well as in overseas markets, will start to rise with increasing raw material cost and low availability of ore.
Exchange Rate: USD 1=INR 60.15
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