Indian Ferro Chrome Market unchanged Amid Slow Demand

High Carbon Ferro Chrome prices stable amid slow demand and low availability

Domestic offer price for High Carbon Ferro Chrome is unchanged from last week. The mainstream price of HC Ferro Chrome 60% min. is hovering around INR. 73,000 /MT (Ex-Works Odisha). A producer source remarked “Our feeling is that prices will remain more stable now since the US dollar has declined somewhat in the past few days, but we can't say exactly how the market will react.” Most of the Ferro Chrome produced in India exported to the Far East (China, Japan, South Korea and Taiwan) since it is the epicentre of stainless steel production and also considering our logistical advantage. FACOR (Ferro Alloys Corporation Limited) is offering HC Ferro Chrome (60% Grade) at Rs. 75,000 (Ex-Plant).

Chinese Market

Spot prices of imported High Carbon Ferro Chrome into China were steady this week on slack trading activity due to China's week-long National Day holiday and the settlement of fourth quarter European benchmark contracts.

Offers for Indian-origin High Carbon Ferro Chrome (58-60% Cr) were heard at 85-86 cents/lb CIF China but market participants pegged the tradable price at 84-85 cents/lb CIF China. Indian suppliers raised offer prices following the recent appreciation of the Rupee against the Dollar, but sources highlighted that most Chinese buyers considered 86 cents/lb CIF too high.

SteelMint assessed that Demand for Ferro Chrome in China typically picks up around this time of year until year-end, which could boost prices.

Japanese Market

Spot prices of High Carbon Ferro Chrome imports into Japan fell this week, pressured down by oversupply which led to deals concluded at levels below 90 cents/lb CIF Japan, according to sources. The offer price for HC Ferro Chrome from Indian suppliers to Japan stood at 88-90 cents/lb CIF Japan, cents/lb down from 90-92 cents/lb last week. One Indian producer closed a deal at below 90 cents/lb CIF Japan for less than 100 MT. Market sources attributed the weaker prices to over-supply, in contrast to the earlier upturn led by a stronger Indian rupee.

SteelMint assessed that fundamentals have not changed much, but there was lack of activity in the market with the ongoing holidays (October 1-7 National Day) in China.