Ferro Chrome markets tanks as stainless steel majors in China cut their tender price by RMB 500/MT.
Export offers to China from Indian suppliers of HC Ferro Chrome (58-60% Cr, 6-8% C) eased to 90 cents/lb CFR China, down from 97-98 cents/lb in the previous week, due to substantially lower tender price released by Chinese stainless steel mills. However, no deals could be confirmed for Indian origin HC Ferro Chrome.
This week, major Steel mills in China like Baosteel, Tsingshan Group and TISCO have also declared their purchasing price for HC Ferro Chrome for April deliveries, which is down by a substantive 500 Yuan M-o-M to set it at around 7,250-7,500 Yuan per metric tonne (equivalent to USD 87-90 cents/lb) for Apr’18.
SteelMint assessed that this sharp fall in purchase price is indicative of the fact that Ferro Chrome demand from China’s Stainless Steel sector is down drastically and is likely to pull down Chrome Ore prices as well. This will in-turn pressure global Ferro chrome offers to correct significantly.
The spot offers for high-carbon lumpy Ferro Chrome exported to Japan and South Korea was flat W-o-W at 96 and 95 cents/lb CIF respectively. However, there was an absence of reported bids or deals. An Indian producer said offers were possible at 94 cents/lb CIF Japan. He further added they saw no spot inquiries for the lumpy material as buyers appeared to have satisfied their requirements last month.
Similarly, in the Indian domestic market too Ferro Chrome prices fell sharply after the lower tender prices announced by Chinese Stainless Steel mills. The mainstream offers for HC Ferro Chrome 60% min. is around INR 80,000 /MT (Ex-Works Odisha).
SteelMint learned that most market participants hold a pessimistic outlook towards the future market trend.
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