Indian Ferro chrome market continued to lose ground, with prices easing on lower offers and absence of buying interest.
Domestic Ferro chrome market remained weak owing to scarce demand. Indian producers reported of excess supply in the market as buyers are still not ready to buy and they were adopting a wait-and-see stance. SteelMint assessed that current offers for 60% grade are INR 67,000/MT (ex-works, Odisha) and INR 68,000/MT (ex-Raigarh).
Meanwhile, South African-origin charge Chrome (48-52% Cr) was being offered at 80-81 cents/lb, CIF India.
“Demand for Ferro Chrome has continued to be lacking amid production cutbacks by Stainless Steel mills,” stated a producer source from Odisha
In future prospect, most sources said they would wait for more price direction before making decisive procurement decision.
Anti Dumping Duty on Stainless Steel Imports to India
Ministry of Commerce has made some amendments to the final finding for anti dumping duty on Stainless steel imports of 304 series.
Earlier in March, the directorate general for anti dumping & allied duties had recommended the union ministry of commerce to levy an anti dumping duty on hot rolled flat stainless steel imported from China, Malaysia and Korea
The general had recommended a levy of USD 309/MT on import of material from China. While, USD 316/MT and USD 180/MT on material imported from Malaysia and Korea respectively.
Import of flat-rolled stainless steel products of width less than 600 mm (CH 7220) was recorded at 101,600 MT in FY14 and 131, 800 MT during FY15 (Apr’14-Jan’15).
Domestic Ferro chrome producers are expected to benefit as the domestic Stainless steel mills were operating at 50-60% capacity. Increase in production of Stainless steel in India to meet the domestic demand will in turn lead to an increase in demand for Ferro chrome.
OMC’s Chrome Ore E-auction
Chrome ore prices of Odisha Mining Corporation (OMC) have fetched a mixed response from buyers in the e-auction held on 6 Apr’15. Price for +54 grade has increased by 2.23% and 8-50 & 46-48 grades have witnessed the sharpest rise of 18.6% and 27.9%respectively. However, 52-54 grade Friable chrome ore prices have declined by 5.5% and 50-52 grade offers have also fallen by 1.7%
There was about 24,000 MT Friable ore on offer at the South Kaliapani, 500 MT at Sukrungi and 900 MT at the Chrome Ore Beneficiation Plant (COBP) of OMC.
Chinese Market
SteelMint assessed the spot price of India-origin high carbon Ferro chrome (58-60% Cr) at 79-81 cents/lb, CIF China; weekly unchanged amid support from India’s export rebate cut.
No deals could be confirmed and offers were sparse this week due to limited inquiries from Chinese buyers.
Chinese buyers saw 79-79.5 cents/lb, CIF as a tradable price for Indian Ferro chrome, but Indian suppliers were mostly asking for prices above 80 cents/lb, CIF.
Offers were supported by India’s cut in the export subsidy rate for Ferro chrome to 2% from 4% for Chinaw.e.f1 Apr’15. Indian producer source said he was looking to sell the material at 82 cents/lb, CIF this week due to the rate drop — he estimated Indian exporters will need to sell 1.5-2 cents/lb higher to cover the cut.
Meanwhile, the spot price of South African-origin charge Chrome (48-52% Cr) was assessed slightly lower at 78-79.5 cents/lb, CIF China compared with 78-80 cents/lb, CIF a week earlier based on prices pegged by the market participants amid slow demand and ample supply.
Japanese Market
Spot trade in high carbon Ferro chrome into Japan was thin this week, deterred by changes in India’s export rebate rate and decline in nickel prices, market sources.
SteelMint assessed the spot import price of high carbon Ferro chrome at 85-86 cent/ lb, CIF Japan; flat from the previous week amid a lack of offers, bids or deals.
One Indian producer said his price idea was 85 cent/lb, FoB East Coast India; up from 83 cent/lb, FoB last week. Container freight was 3 cent/lb to Japan.
A Japanese trader said another Indian producer indicated sales interest, but not a firm offer at 85-86 cents/lb, CIF Japan for 60% Chrome content.
After the Indian government cut the export incentive for Ferro chrome, Indian producers have raised offers to cover the lower incentive. While, buyers stepped back to await developments.
“We moved up the prices to reflect the change. But, market is soft as people are waiting and watching,” said the Indian producer source.
SteelMint assessed that prices have been pretty flat over the past few weeks, and there is not much hope for strength given the lack of spot activity.
Exchange Rate : USD 1= INR 62.43
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