Ferro chrome market witnessed prices staying depressed on limited spot demand and general oversupply.
Indian producers of ferro chrome have been unable to raise offers in the domestic market owing to persistent over-supply in the market. Sources said positive momentum to lift prices above current level was lacking. The mainstream domestic price of HC ferro chrome 60% min. is around INR 57,000/MT (Ex-Works Odisha). According to sources, one of the major producers were offering at INR 56,000/MT.
Chrome ore base prices have been reduced by 12% owing to weak responses of buyers. State based miner OMC has offered 39,400 MT of Chrome ore, including 35,100 MT of friable ore and 4,300 MT of concentrate ore to be sold through an e-auction on 25 Jan’15.
SteelMint assessed that there is little confidence in the Ferro Chrome market as demand has not picked up and there is little possibility of any price rise.
Ferro Chrome Export Offers Down
India producers were not willing to lower (HC) Ferro Chrome (58-60% Cr) offers below 62 cents/lb CIF China.
Most sources reported no buying interest from Chinese users, with buying indications mostly at 57 cents/lb CIF China. Prices are to remain under pressure as domestic Chinese stainless steel producers have cut their offers sharply. Other than lower prices, the Ferro Chrome market in China is also under pressure from seasonally slower demand, while supply remained large in the country.
The spot price of high-carbon Ferro Chrome imported into Japan was down and prices were assessed at 64 cents/lb CIF Japan. Deals were also heard to be concluded at 63 cents/lb CIF Europe for (HC) Ferro Chrome (60% Cr).
Exchange Rate: USD 1 = INR 68
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