High Carbon Ferro Chrome market witnessed little buying interest as end-users withdrew on shaky market sentiment.
In the domestic market, HC Ferro Chrome prices were down on low demand. Current prices for HC Ferro Chrome (60% grade) is at INR 69,500/MT (Ex-works Odisha). In Raigarh, prices are at INR 70,000/MT, down by INR 1,000/MT from last week. Market sources reported that there is sufficient supply in the market but trade levels are very low.
[su_quote]A trader from Odisha remarked,” The export quota is not moving at all, but we are expecting trade to open from China soon.”[/su_quote]
Chinese Market
Prices of Indian-origin HC Ferro Chrome (58-60% Cr) at 83-85 cents/lb CIF China and South Africa-origin charge Chrome (48-52% Cr) at 83-84 cents/lb CIF China, both unchanged from last week.
[su_quote]Deals and offers were scarce because of lackadaisical import appetite. A trader from India stated, “Chinese buyers were discouraged from purchasing seaborne material by cheap domestic prices, while suppliers were not keen to offer given low bids and price expectations.”[/su_quote]
Ferro Chrome demand in China was generally weak because of production cuts among Chinese stainless mills and flat stainless steel prices since the Chinese New Year holidays ended.
Domestic spot prices of HC Ferro Chrome (50% basis Cr) in China had slipped RMB 100/MT M-o-M to RMB 6,600-6,800/MT (81-83.5 cents/lb) delivered with 17% VAT, after major stainless mills cut their April purchase prices.
Japanese Market
Price of HC Ferro Chrome (60-65% Cr) imported into Japan at 88-89 cents/lb CIF for the fourth week in a row; unchanged since Mar’14.
There was no deal, bid or offer reported for standard grade. Indian producer source said, Japanese buyers were waiting for Glencore Xstrata and Nippon Steel & Sumikin Stainless Steel Corp to settle their second quarter contract price.
Market participants on the future outlook are anticipating a price increase in the month of May as overseas trade is expected to begin. SteelMint assessed that the overall market sentiment is quite negative and Indian producers for Ferro Chrome are quite hesitant in increasing prices looking at the prevailing market condition.
Exchange Rate: USD 1= INR 60.28
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