Ferro Chrome prices lost more ground, jolted by a poor demand that tracked increasing bearing sentiment.
“Market participants are of the view that major Chinese stainless steel mills might substantially lower their tender prices for May,” said a source justifying the evaporating demand for the commodity in the market as traders hold off purchases till the announcement of May prices.
SteelMint learned that UG2 Chrome Ore prices are also under pressure owing to weak demand for Ferro Chrome and port stocks in China rising. A source mentioned that the Ferro Chrome producers are not in a state to pay high values for Chrome ore currently. The UG2 Chrome Ore offers are around USD 195/MT CIF China.
“There has been an uneasiness in the market as buyers are extremely cautious or demanding Ferro Chrome at ridiculously low prices,” said another source expressing his concern on the status quo of Ferro Chrome market.
Indian producers failed to conclude deals even after offering at 80 cents/lb CIF China. Meanwhile, a similar trend has also been noticed in Japan and South Korea as they are also observed to be in a wait-and-watch mode. Export offers are assessed at 88 cents/lb CIF Japan and 87 cents/lb CIF Korea.
In line with declining Ferro Chrome prices in the Chinese market and export prices to China, the domestic prices also plunged to INR 72,000/MT (Ex-Odisha). It has also been heard that some traders are offering even below the aforementioned level.
On the future outlook, a fall in Ferro Chrome prices is inevitable but is expected to find stability when market direction gets clearer after May tender prices are declared as Indian Ferro Chrome price is already close to the bottom.
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