The prices were mainly in line with market expectations, with most participants expecting a stable market
Confidence appeared to be returning to the domestic Ferro Chrome market, with prices having settled at last week's level. The mainstream price of HC Ferro Chrome 60% min. is ranging from Rs. 73,000 – 74,000 /MT (Ex-Works Odisha). A trader source remarked, “Producers are trying to offer at higher prices now in order to take advantage of the improved market sentiment, but buying activity is pretty sporadic still.” FACOR (Ferro Alloys Corporation Limited) is offering HC Ferro Chrome (60% Grade) at Rs. 75,000 (Ex-Plant).
Chinese Market
Spot prices for imported Ferro Chrome into China remained unchanged W-o-W. Export offers to China for Indian-origin HC Ferro Chrome (58-60% chrome) is trading at around 85-86 cents/lb CIF China main-ports same previous week.
Market participants expect support for Ferro Chrome spot prices in China after China's largest stainless steelmaker, Shanxi Taigang Stainless Steel, lifted its High Carbon Ferro Chrome (50% basis Cr) bid price by Yuan 50/ MT (USD 8/MT) for October deliveries.
China's high carbon Ferro Chrome imports jumped 85.6% Y-oY and 42.9% M-0-M to 157,660 MT in August, following a rise in imports from South Africa, according to data from the Chinese customs.
Imports from South Africa rose 51.7% M-o-M to 78,201 MT in August as Ferro Chrome smelters there restarted production in June after the end of an energy buyback program with state utility Eskom.
Imports from India increased 20.7% compared to July; to 24,933 MT. Market participants had reported a pick-up in buying interest for Indian Ferro Chrome in June following a rebound in Chinese domestic prices, while suppliers were willing to lower offers then to win orders as the rupee fell against the dollar.
China's total Ferro Chrome imports rose 17.4% on the first eight months of last year to 1.08 million MT.
Japanese Market
The offer price for HC Ferro Chrome from Indian suppliers to Japan rose to 90-92 cents/lb CIF Japan Friday from 89-91 cents/lb last week, on the back of Mitsubishi Steel's tender seeking 1,600 MT of the material closing this week.
One Indian producer source said his price idea was in the middle of 90-95 cents/lb range, but he had not made any spot offers to Japan this week and he was expecting a price rise of around 5 cents/lb from the previous week due to the stronger Indian Rupee.
No deals were reported this week between India and Japan, as the Japanese Steelmakers awaited the settlement of the term price for the fourth quarter between South African producers and Stainless Steelmakers in Japan and Europe. India fulfils the left-over spot requirements.
On the future outlook, it is to be noted that South African power utility Eskom had not requested Ferro Chrome producers in the country to cut electricity consumption in the last few months. This means there was probably excess supply in the absence of production cuts even as demand fell, and this could further impact prices in the coming days.
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