Indian Ferro Chrome offers escalate as overseas market reflect bullish sentiment. Good demand from China has supported Indian Ferro Chrome in upward correction of its prices.
“Stainless steel witnessed strong demand in China backed by its high prices. Hence, these mills are in need more Ferro Chrome and are in a position to accept higher offers,” revealed a producer source from India. He also added that price rollover by major stainless steel mills also supported the price hike.
“Appreciation of INR against USD also prompted us to raise our export offers,” remarked another source, when questioned on the reason for upward price correction. Export offers to China for Indian-origin HC Ferro Chrome (58-60% chrome) moved higher to around 82-83 cents/lb CNF China. However, the offers for Japan and South Korea remained unchanged at 88 cents/lb and 87 cents/lb respectively, as these countries are resisting higher offers, and are reluctant to pay a premium on Chinese prices.
Confidence appeared to be returning to the domestic Ferro Chrome market as well. A trader source remarked, “Producers are trying to offer at higher prices now in order to take advantage of the improved market sentiment.” In line with strong demand from China, Indian producers hold their offers firm in the domestic market at around INR 67,000-68,000/MT (Ex-Odisha).
On the future trend, most market participants believe there is a possibility of a further price-rise on account of strong steel fundamentals in China and cutback in Ferro Chrome production in China on environmental inspections.
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