Ferro chrome prices remained under pressure on low demand from stainless steel mills, but there is very limited scope of price correction owing to rising input costs.
There were only few inquiries for ferro chrome in the domestic market and most Indian producers are of the view that prices have bottomed out. Currently, 60% grade is being offered at around INR 64,500/MT (ex-works, Odisha) and INR 66,000 (ex-Raigarh). Producer sources said that they were aware of downfall in the stainless steel market, but with no inquiries it was difficult to see where the tradable value was.
“Demand for steel is very poor and since buying continues to be weak, the market is already on a downtrend with no visible recovery,” stated an Odisha based producer.
Odisha Mining Corporation (OMC) chrome ore prices have incremented for most of the grades in e-auction held on 17 June’15 by around 11%.
SteelMint assessed the near-term expectation is of prices to remain under pressure but due to rising input cost prices are unlikely to come down. Participants reported market will remain weak with low ferro chrome demand worldwide.
In the export market, no deals were heard to be concluded this week as there is a big gap between the price ideas of buyers and sellers. For example, Indian producers are amenable to selling at 84-85 cents/lb CIF Japan. But, Japanese buyers are unwilling to buy anything above 80-81 cents/lb CIF Japan.
The spot price of South African-origin charge chrome (48-50% Cr) was assessed at around 80 cents/lb CIF India. Although, there is not much demand in India for importing the material with unfavorable currency exchange rate.
Exchange Rate : USD 1 = INR 63.6
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