India: High Carbon Ferro Chrome Prices down as Buying Interest recedes

 High Carbon Ferro Chrome prices were slightly down from last week amid limited activity. There were very few inquiries from buyers and few deals were concluded confirmed market participants.

In the domestic market HC Ferro Chrome prices fall on sluggish demand from end-users. Current price for HC Ferro Chrome (60% Grade) is around INR 71,000/MT (Ex-Works Odisha) and INR 72,000/MT (Ex-Raigarh). Indian producers said that there was a lack of procurement interest from domestic buyers and so most producers have not been able to raise offers even though OMC has raised prices. Most market participants remained uncertain about the domestic market in the near term.

[su_quote]Looking at the market condition a trader based from Odisha remarked, “Demand has been poor over the past one or two months and prices seem to be flattening out. While, traders were speculating that prices are coming down as there is lack of deals.”[/su_quote]

Chinese Market

India-origin HC Ferro Chrome (58-60% Cr) and South African Charge Chrome (48-52% Cr) were assessed at 84-86 cents/lb CIF China and 84-85 cents/lb CIF China, respectively, both unchanged W-o-W. Reportedly there was thin demand for imports due to sufficient material available from domestic production, which has resulted in a lack of deals and offers.

[su_quote]Indian producer said, “Buying indications from Chinese buyers was less. We will offer to other countries, since prices are so unattractive in China.”[/su_quote]

Chinese domestic HC Ferro Chrome (50% basis Cr) spot prices were unchanged W-o-W at around RMB 6,750-6,900/MT (83.5-85 cents/lb).

Japanese Market

Offer of high-carbon 60-65% lumpy Ferro Chrome imported into Japan remained at 88-90 cents/lb CIF, unchanged for a third consecutive week, with no bids or deals reported. Indian producers said that there were no inquiries from Japan this week.

Indian producer were offering HC Ferro Chrome at 88 cents/lb CIF South Korea, whereas Japan may offer it at about 89 cents/lb CIF Japan as freight to Japan is 1 cent/lb higher.

On the future outlook, most traders reported of a lackluster market with hardly any buying interest in the past 10-15 days. SteelMint assessed that weak demand has lead to marginal softening of prices, and further downfall in price scan not be ruled out.

Exchange Rate: USD 1=INR 61.91