Indian Ferro Chrome prices witnessed a sharp rise in line with a strong stainless steel market in China and high demand for the Alloy.
Ferro Chrome prices have risen sharply primarily due to rising Chrome Ore and Ferro Chrome prices in China. The same can be attributed to limited domestic Ferro Chrome supply amid strengthening stainless steel prices in China.
Environmental inspections in China is also resulting in shutting down of some Ferro Chrome plants as the country tries to control air pollution before winter arrives. This is also supporting Ferro Chrome prices to go higher amid greater dependence on imports.
“Recent hike in purchase price by major Chinese stainless steel firms owing to increasing demand has supported the rise of Ferro Chrome prices,” said a producer source from India.
SteelMint assessed export offers at 100 cents/lb CNF China, albeit counter offers from buyers is at around 96 cents/lb. Another producer source revealed that offers are being quoted at 102 cents/lb and above but the same is expected to find acceptance by the market in the coming days.
Other Asian markets are also expected to follow the Chinese market higher. Offers are being quoted at around 103 cents/lb CNF South Korea and 104 cents/lb CNF Japan, but no deals are heard to have been concluded at these price levels yet.
Indian domestic market depicted a resemblance to the international trend with domestic offers witnessing a sharp hike as well.
Considering low trading activity of stainless steel in India, the Ferro Chrome producers are mainly focusing on export sales. However, the price of the commodity in the domestic market has increased to INR 83,000/MT (Ex-Odisha), while producers are quoting at INR 85,000/MT and above. Some small quantity deals have also been concluded at the quoted price as the buyers required the commodity on urgent basis.
On the future outlook, it is clear that the market is gaining more confidence in the current elevated price levels, backed by increasing stainless steel prices in China and a stronger Chinese Yuan encouraging imports.
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