Ferro Chrome market strengthens as Stainless Steel mills restock and sellers hold offers high
The balance of power between buyers and sellers appears to have shifted somewhat. The mainstream price of HC Ferro Chrome 60% min. is ranging from Rs. 73,000 – 74,000 /MT (Ex-Works Odisha). A trader source remarked that the domestic market is moving higher each week as producer attempts to raise prices were not resisted by buyers. Few producers of HC Ferro Chrome are also of the view that even if Steelmakers might not immediately embrace the raised prices, but it will eventually gain acceptance. FACOR (Ferro Alloys Corporation Limited) is offering HC Ferro Chrome (60% Grade) at Rs. 75,000 (Ex-Plant).
Chinese Market
Spot prices for imported Ferro Chrome and Charge Chrome into China rose following the appreciation of the Indian Rupee and South African rand against the US dollar. Export offers to China for Indian-origin HC Ferro Chrome (58-60% chrome) moved higher to around 85-86 cents/lb CIF China main-ports up from 84.5-85 cents/lb in the previous week. South African Charge Chrome (48-52% Cr) was also assessed at 85-86 cents/lb CIF China. An official with an Indian producer said, “The Indian Rupee has appreciated over the past three to four days so sellers would like to increase prices. But whether customers would accept higher offers remains to be seen.”
Chinese domestic prices of High Carbon Ferro Chrome (50% basis Cr) were steady week-on-week at Yuan 6,850-7,000/MT (equivalent to 84-86 cents/lb).
Transactions were generally sparse as market participants were waiting for price indications from the October bid prices of major Chinese Stainless Steelmakers which are typically set in the second half of the month — and settlement of the fourth quarter Charge Chrome benchmark prices. Some buyers were also holding back following a recent decline in Nickel prices, which had affected Chinese domestic Stainless Steel prices, sources noted.
Japanese Market
The offer price for HC Ferro Chrome from Indian suppliers to Japan rose to 89-91 cents/lb CIF Japan Friday from 87-90 cents/lb last week as Indian producers raised offers on the stronger Rupee, according to market sources.
Indian producers raised spot offers by 2-3 cents/lb this week on the back of the Rupee trading at around 63 to the Dollar, compared with Rupee at 67 to a Dollar a week ago.
Buying interest in Japan, however, has tapered from last week as most Japanese mills have secured October supplies, highlighted market participants.
Other Overseas Markets
Trade was more active in South Korea with one Steelmaker tendering for 800 MT of HC Ferro Chrome. A major Indian producer offered at 88 cents/lb CIF South Korea. The same source remarked, “I think the price had hit the bottom and is likely to go up further in the near future.”
Another producer source said, “Indian prices most likely will go up as the US and European traders are trying to book more material these days, which would limit availability.“
SteelMint assessed that the Ferro Chrome market is witnessing a demand pull from a seasonal recovery in European and American demand, and the usual Q4 restocking on the horizon will lend further support.
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