Ferro chrome prices remained unchanged as supply glut and slack demand combined to negatively impact the market.
SteelMint assessed that the Ferro chrome market saw rare transactions due to the weak demand from end users. However, Ferro chrome producers have cut production levels substantially, and are not planning on reducing the price considering that it has dropped sharply in the past two months. Therefore, it is expected that ferro chrome prices will hold stable in the near-term. Currently, 60% grade is being offered at around INR 59,000-60,000/MT (ex-works Odisha).
Ferro Chrome Export Prices Stable, Business Thin
High-carbon ferro chrome prices have kept steady this week amid continued low buying interest from overseas traders and stainless steel producers.
Spot ferro chrome import prices in China were flat this week as trade remained slow. The spot import price of Indian origin 58-62% high-carbon ferro chrome was assessed at 69 cents/lb CIF China.
Whereas, the spot price of high-carbon ferro chrome imported into Japan stood at 71-72 cents/lb CIF Japan. Indian producers said there was no spot deal closed this week, and there were inquiries at 70 cents/lb CIF Japan.
Sources reported that along with extremely poor demand for ferro chrome, the market is also plagued with over-supply of the material.
Indian Govt. Raises Duty Drawback
In another development, the Indian government has increased duty drawback on certain steel products w.e.f 23 Nov’15, in order to boost exports. However, it is to be noted that Ferro Alloys does not fall in the category where duty drawback has been raised
Exchange Rate: USD 1= INR 66
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