High Carbon Ferro Chrome prices were unchanged this week as buying interest and trading tapered down.

HC Ferro Chrome prices remained static on low demand from end-users. Current price for HC Ferro Chrome (60% Grade) is settled in the range of INR 71,000-71,500/MT (Ex-Works Odisha) and INR 72,000/MT (Ex-Raigarh). FACOR Alloys one of India’s largest and established producers & exporters of High Carbon Ferro Chrome is offering HC Ferro Chrome at INR 73,500/MT.

[su_quote]A trader from Odisha stated, “Demand for the material is low as the stainless steel market is currently not doing well. This is the main reason for prices to remain unchanged.”[/su_quote]

Chinese Market

Chinese domestic spot prices of High Carbon Ferro Chrome (50% basis Cr) were at Yuan 6,750-6,900/MT (84- 86 cents/lb) on Wednesday; unchanged W-o-W. The spot price for Indian-origin High Carbon Ferro Chrome (58-60% Cr) was assessed at 84-85 cents/lb CIF China, and that for South African charge Chrome (48-52% Cr) at 83-84 cents/lb CIF China on Friday, both unchanged from a week earlier. Market activity in China has slowed down because of on-going Lunar New Year holidays.

This week, one Indian producer was heard to have sold 500 MT HC Ferro Chrome to a Chinese company at 85 cents/lb CIF China, for arrival around mid-February.

[su_quote]A trader from India also remarked, “There were no price indications from Chinese customers as there were no inquiries for imported material in this week. But, I believe buyers’ price ideas are unchanged at 84-85 cents/lb CIF because there is no change in Chinese domestic prices.”[/su_quote]

While some market participants were bullish about Ferro Chrome prices after the Lunar New Year holidays, as higher nickel prices could boost stainless steel prices, others said prices would at best remain stable capped by rising Chinese domestic production and import volumes into China.

Japanese Market

The spot price of Indian-origin High Carbon Ferro Chrome (60-65% Cr) imported into Japan was assessed at 88-90 cents/lb CIF Japan on Friday; unchanged for the fifth week. Although, activity rose on the back of higher Nickel prices, which in turn was supported by Indonesia’s ban on Nickel Ore exports from 12, Jan, 2014. Higher Nickel prices are expected to trigger the increases in prices of stainless steel, and therefore, demand for Ferro Chrome.

One producer source from India also highlighted that the Japanese buyers were mostly looking for low-silicon material.

On the future outlook, SteelMint assessed that HC Ferro Chrome price direction would depend on the situation in South Africa’s Power sector. Market watchers are saying that if there is no (power) buyback by Eskom, there will be a big (Ferro Chrome) surplus in the market.

There had been chatter that the South African state-owned utility could ink power cut agreements with local industrial users due to tight power supply in the country. Eskom’s power alert status on its website was red, which meant that electricity supply is under severe strain.

Exchange Rate: USD 1= INR 62.34