High Carbon Ferro Chrome prices remain rigid due to low availability of the material
Prices of High Carbon Ferro Chrome remain firm in the domestic market due to low availability of chrome ore in the Indian market, resulting in low production. The conventional HC Ferro Chrome price remains at 72,000 /MT (Ex- Works Odisha). However, availability of Chrome Ore is again expected to increase by the end of this month, which will enable Ferro Chrome producers to resume or ramp up production in the coming days. This should reasonably bring down prices in the coming month.
Chinese Market
The Chinese domestic spot price of high carbon ferrochrome (50% basis Cr) remained unchanged at 6,850-7,000/MT(85-86.5 cents/pound), as the market awaited the November bid prices of major stainless steelmakers. Industry participants said deals continued to be struck at the above mentioned price range this week.
According to some sources the spot price is only likely to move after the main stainless producers set their November bid prices by the end of October. An official from Baosteel China in conversation with SteelMint said, “The bid prices will most probably remain unchanged. Prices won't fall because there is support from smelters' production costs, but at the same time they won't rise because demand from mills is at best steady.”
In late September, Shanxi Taigang Stainless Steel had raised its October purchase price by Yuan 50/MT on the month to Yuan 6,750/MT, while Baosteel lowered its price by Yuan 50/MT to Yuan 6,850/MT. Jiuquan Iron & Steel tabled its October price at Yuan 6,850/MT, unchanged on the month.The Chinese domestic spot price has been steady within the current range since late July.
Japanese Market
The spot price of high-carbon lumpy Ferro Chrome imported into Japan was assessed at 92-95 cents/lb CIF Japan, up from 88-92 cents/lb last week on the back of rising production costs in India. Two spot deals were reported; one at 95 cents/lb CIF Japan for over 200 MT for loading from Vizag port another at 92 cents/lb CIF Japan for 100-150 MT, loading from Haldia port. One Indian producer source ascribed the rise to reduction chrome ore supplies in India following labor disputes at state owned mines earlier in the year. India's state-owned OMC (Orissa Mining Corporation) will hold its monthly sell tender at the end of the month, offering around 10,000 MT of chrome ore of different grades.
Outside of Japan, a deal at 88-89 cents/ lb CIF South Korea for over 500 MT was reported. One Indian producer source said this was range-bound from the Japanese price level of 94-95 cents/lb CIF Japan, as shipment costs from India to Japan are typically 5 cents/lb higher than South Korea.
Steel Mint assessed that there are some concerns among the Indian players about the increasing supply of Ferro Chrome in the Chinese market. Production capacity in China is still rising while imports into China are projected to remain high, culminating in added pressure on Ferro Chrome prices.
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