Ferro Chrome producers have raised their offers to China in line with a rally in stainless steel prices in China and higher Chrome Ore prices.
Indian producers were prompted to raise their offers for Ferro Chrome over a strong stainless steel sector in China and rising nickel prices, along with environmental restrictions on alloy production in certain areas – further restricting supplies. Moreover, high Chrome ore prices lent further support to elevated offers.
Indian origin 60% Ferro Chrome is assessed to be at 91 cents/lb CNF China, however, sell-side participants are now trying to conclude deals at closer to 95 cents/lb. Offers for other markets in Asia also followed Chinese prices, and are now being offered at 94 cents/lb CNF Japan and 93 cents/lb CNF Korea. However, no deals could be confirmed at the above mentioned prices.
A producer source revealed that most of the Indian producers are focusing on the export market on account of higher realization from China. “Stainless steel majors in China are also expected to raise their purchase prices for September by a minimum of 1000 Yuan owing to spate of spot trades occurring presently at above 8000 Yuan,” he said.
Considering lackluster of Stainless steel market in India, the domestic market has been unattractive for the Ferro Chrome producers.
SteelMint assessed Ferro Chrome price at INR 72,000/MT (Ex-Odisha), while there has been limited number of deals concluded at this price as buyers are unwilling to pay higher prices. As per a source, the buyers are still unable to digest such a sharp incline in Ferro Chrome offers in such a short period of time.
On the future outlook, market participants are bullish about the present market conditions as the majority of Indian Ferro Chrome production in August has been booked out, which makes spot supply very tight in the Chinese market. Hence, Indian Ferro Chrome prices are to increase further in all likeliness supported by Chinese buying.
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