Ferro Chrome market weakened further as Stainless Steel mills pulled out of the market and sellers drifted offers lower.
The balance of power appears to be totally with buyers and Ferro Chrome sellers have no option but to cut offers every week to garner some buying interest. The mainstream price of HC Ferro Chrome 60% min. is around INR 65,000/MT (Ex-Works Odisha). A producer source remarked that the prices are under pressure and some producers are offering aggressively to clear their stock, as they fear prices could drop down even further in the coming days.
Chinese Market
Export offers to China from Indian suppliers of HC Ferro Chrome (60% Cr) eased, and Chinese buyers are not showing any buying interest at anything above 60 cents/lb CFR China, in line with the very weak stainless steel demand in China, which has kept stainless steel prices under pressure, while also squeezing prices of Ferro chrome. Chinese domestic Ferro Chrome prices are also trending down, after two major Stainless Steel mills decided not to declare their Ferro Chrome tender price for June, citing sufficient inventory of Ferro Chrome for their production requirement. Most Stainless Steel mills are cutting down on their production levels drastically in June, after going on maintenance in May. Moreover, many Stainless Steel producers in China are shifting a significant part of their production capacity to produce Crude Steel, further lowering Ferro Chrome demand from China.
Other Overseas Markets
The spot price of HC Ferro Chrome exported to Japan was flat at 86 cents/lb CIF Japan and a deal was heard to be concluded for 3-4 containers. Demand from overseas buyers remain scant and there is an absence of any major inquiries, bids and deals. Moreover, any chance of a u-turn in Ferro Chrome prices in the near term is non-existent.
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