Indian Ferro Chrome offers slips further on persistent pressure by buyers demanding the Alloy at lower prices.
The sentiment in the Ferro Chrome market continues to soften as Ferro Chrome buyers continue to stay on the sidelines on amid lower Stainless Steel demand and prices. Ferro Chrome prices remain under constant pressure as demand for the commodity has failed to pick up. Moreover, lower Chrome ore prices in China exerted further pressure on Ferro Chrome prices.
“With a view of curbing pollution in China coupled with slump demand for stainless steel, several stainless steel plants slashed their production while several plants are on maintenance,” said a producer source elaborating on the reduced Ferro Chrome demand from China.
SteelMint assessed export offers are at around 84 cents/lb CNF China, 90 cents/lb CNF Japan and 89 cents/lb CNF Korea respectively.
Indian producers are contemplating shifting their focus from the Asian markets to Europe and USA, in order to ease their selling pressure.
The domestic market also followed the export market, as buyers in India pressurized Ferro Chrome producers to cut offers to solicit trade.
Market condition is quite critical as they big potential buyers are counter-offering at INR 70,000-71,000/MT, while some sellers are resisting offers below INR 75,000/MT. However, deals are heard to have concluded at around INR 73,000/MT (Ex-Odisha).
“We are not sure when the market will even stabilize as demand has been constantly deteriorating, and constant falling prices further push away buyers to a wait-and-watch mode, exerting added selling pressure on the producers,” expressed a producer source on his concern on falling Ferro Chrome prices.
In consonance with the aforementioned factors, any upswing in the Ferro Chrome price is unlikely as market participants remain bearish expecting Ferro Chrome prices to fall further.
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