Indian producers of Ferro Chrome cut offers to solicit trade as Chinese buyers looked for lower offers.
Export offers for India-origin High Carbon Ferro Chrome (60% Cr) was pegged back at 120 cents/lb CIF China, down from 125 cents/lb CIF China a week ago amid weak demand in the week gone by. Offers were heard at around 125 cents/lb CFR this week, but several industry participants indicated 118-120 cents/lb as the tradable range.
Indian suppliers were more willing to lower offers to buyers in China, compared with a few months ago, as trading has stalled. “With the Chinese demand falling, 120 cents/lb has become a good price,” he said. Chinese Stainless steel mills had seen their profit margins increase due to high prices of stainless steel, which in turn encouraged them to raise their output. Some of these facilities are expected to start production in 2017, which may lead to output rising by 11-12% [next year].
Domestic stainless steel prices in China have trended up amid concerns of tighter supply, with Jiangsu Delong Nickel Industry Co. ordered to cease all production at its 2 million-TPA (tonnes per annum) stainless steel facility, for ramping up capacity without obtaining the necessary environmental approval. This sparked concerns over the possibility of tighter supply with market inventory levels already low.
As word of the closure spread in the market, prices for 304 stainless CRC jumped by almost 200 RMB/MT (USD 29).
The spot offer price of high-carbon lumpy Ferro Chrome exported to Japan has trended up. An Indian producer said offers were at around 125 cents/lb CIF Japan for material with 60% Cr, 3-4% silicon, maximum 8% Carbon, maximum 0.02% Phosphorous, and maximum 0.06% Sulphur, sizes 10-100 mm. He further added they saw no confirmed deals yet for the lumpy material, but the price ideas of buyers and sellers is gradually converging.
First Quarter 2017 Ferro Chrome Price Announced
The European benchmark Ferro Chrome price for the first quarter of 2017 has been settled at 165 cents/lb, an increase of 50% from the 110 cents/lb price in the fourth quarter of 2016.
Domestic Ferro Chrome Price Rises
Domestic offer price for High Carbon Ferro Chrome has witnessed a slight uptick from last week. The mainstream price of HC Ferro Chrome 60% min. is around INR 110,000/MT (Ex-Works Odisha). A producer source remarked that there has been an increase in offers this week, as there is a shortage of material in the domestic market.
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