High carbon Ferro Chrome market continued to weaken as buyers withdrew further from purchasing. Prices continue to remain unchanged W-o-W.
The HC Ferro Chrome market saw no changes in term of prices as demand continues to erode. Current prices for HC Ferro Chrome (60% grade) is hovering at around INR 69,500-70,000/MT (Ex-works Odisha). In Raigarh, prices stand at INR 71,000/MT. Raigarh and Odisha prices remain unchanged W-o-W.
[su_quote]“Demand for Ferro Chrome is declining on all fronts, both foreign and domestic,” said a producer source in Odisha.[/su_quote]
Indian Metals & Ferro Alloys Ltd suspends mining activity at Sukinda Chromite Mines
Mining activity at Indian Metals & Ferro Alloys Ltd’s Sukinda Chromite Mines has been suspended w.e.f 01 April, 2014 as extension of environment clearance beyond 31 March, 2014 is still under process. The requisite stock of chrome ore is available at the plants and for the moment they do not anticipate any production disruption.
Chinese Market
Domestic spot prices of high carbon Ferro Chrome (50% basis Cr) in China remained flat W-o-W at RMB 6,700-6,900/MT (82-85 cents/lb) delivered including 17% VAT. The market was awaiting indications from major Chinese mills.
Sources said the steelmakers were waiting for each other to make the first announcement, and were in no hurry to purchase as they were sufficiently stocked.
Many in the market were expecting at RMB 50-100/MT cut to the April purchases prices, compared with March. Spot prices, which usually take their lead from the monthly purchase prices, would likely ease if the steelmakers cut their rates. This will further dampen sentiment in the Ferro Chrome market, which is currently facing weak demand from the stainless sector.
According to sources, China’s Baosteel Stainless has lowered the price at which it is willing to purchase high carbon Ferro Chrome for April delivery. The price from the steel mill is RMB 6,700 (USD 1,085) MT, including delivery, down by RMB 100 from the price it paid for March delivery. The all-cash price equates to 83 cents per lb.
SteelMint learnt from market participants that there is an expectation of a re-emergence of some buying activity in days to come. However, most were not too confident that this would render to a price rise. SteelMint assessed that transactions in the spot market are expected to be scant now as people do not want to buy at the wrong price, when the Stainless Steel market is not doing well.
USD 1= INR 60.04
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