Ferro Chrome prices regained ground as limited availability coupled with demand from end-users, which have run down the inventory, lent support and firmed trade levels.
Indian producers of HC Ferro chrome have raised offers in the domestic market owing to shortage of Chrome ore and equally supported by steady demand from buyers in India. Currently, 60% grade is being offered at around INR 71,500/MT (ex-works Odisha) and INR 71,000 (ex-Raigarh).
A Purchase Manager at one of the major stainless steelmakers in India remarked that there has been an increase in offers from producers this week, and end-users have started to react for these increased prices. They believe that prices may further increase in the domestic market to INR 72,000 /MT in a week’s time.
Chinese Market
The spot price of South African origin charge Chrome (48-52% Cr) at 80-81 cents/lb CIF China; down from 81-82 cents/lb CIF a week ago, on lower offers heard and prices were on the same level in the market amid weak demand. The price had been unchanged since 16 May, 2014.
The price of Indian origin HC Ferro chrome (58-60% Cr) was assessed unchanged at 82-84 cents/ lb CIF China W-o-W.
In contrast, Indian Ferro chrome prices are holding up on tight supply owing to Chrome ore shortage and high prices in Indian market.
“Domestic prices are firming up. Producers are fulfilling demand in India before exporting out of India,” remarked a producer source from India.
Prices in Chinese market remain under pressure and sentiments are still weak, particularly after two major stainless steelmakers in the country cut their October domestic purchase prices.
Chinese stainless steel prices have also continued to ease owing to falling nickel prices and slow demand. Chinese mills are trying to pressure raw material prices lower to reduce costs and minimize losses, sources said.
SteelMint learned from market sources that there could be more downside to Chinese Ferro chrome prices. But, things should get better in November as more Ferro chrome smelters in the south shutdown during dry season.
Power rates typically raise in China’s hydropower-dependent south when the dry season starts around late-October and power-intensive Ferro alloy plants cut production or shutdown plants in response.
Japanese Market
Spot HC Ferro chrome import trade into Japan was stable for a third consecutive week as trade thinned amid public holidays in India.
There was no deal, bid or offer reported for the standard grade. One Japanese trader said a wide gap between bids and offers led to this impasse. Japanese end-users were indicating buy interest at 85 cents/lb CIF Japan for the standard grade. While, Indian producers sell ideas were at 90 cents/lb CIF Japan or higher.
SteelMint assessed Japanese spot HC Ferro chrome at 88-90 cents/lb CIF Japan; unchanged from two weeks ago despite the quarterly South African charge Chrome price falling by 4 cents/lb.
Earlier, Japan’s Nippon Steel & Sumikin Stainless Steel Corp and Glencore agreed to set Q4 FY14 contract price for charge Chrome from South Africa at 123 cents/lb CIF Japan; down by 4 cents/lb from Q3 FY14, but higher than 120.50 cents/lb CIF for Q4 FY14.
Following the Q4 FY14 contract price fall, buyers are likely to ask for a 4 cents/lb cut in the spot prices, assessed SteelMint.
Exchange Rate: USD 1= INR 61.38
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