Ferro Chrome offers witnesses a sudden upswing on rising demand from China.
“Higher chrome ore from South Africa due to supply tightness stands out to be a major reason for the rise in Ferro Chrome prices,” mentioned a major Ferro Chrome producer from India. He further added that low production of Ferro Chrome in China has cautioned the buyers of a further rise in the commodity’s price in near term. Hence, they have decided to purchase in advance to hedge against the risk.
Another producer source revealed that traders in China are fearing that the production cuts implemented in the Silico Manganese and Ferro Silicon market could now be extended to the Ferro Chrome market as well. That would see prices of Ferro Chrome going through the roof, as has been the case with Silico Manganese and Ferro Silicon in China. He further claimed that although the European benchmark price came down to 118 cents/lb, that does not affect the Indian offers much, as demand from China is gaining ground.
SteelMint assessed that increasing inquiries for the commodity has encouraged Indian producers to raise their offers.
Ferro Chrome offers are assessed at 88 cents/lb CIF China, 90 cents/lb CIF Korea and 91 cents/lb CIF Japan.
Similarly, Ferro Chrome offers have also increased in the domestic market. Current offers stand at around INR 75,000/MT (Ex-Odisha). Ferro Chrome demand in Indian market remains moderate while prices have elevated in line with the export offers.
On the future outlook, Ferro Chrome offers are expected to remain stable as market participants do not see any production cut in stainless steel production in China, hence Chinese demand is anticipated to remain unaltered. However, a cautious sentiment remains in the Indian market wherein the buyers differ in opinion and are waiting to see if the high offers hold for some time.
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