Ferro Chrome prices were unchanged this week, as market awaits the announcement of the July Tender price by Chinese Stainless Steel mills.
The Ferro Chrome market remains bullish as production cut in China has lent strong momentum lately with the suppressed supply capacity fueling a sentiment to drive up the prices.
“The demand from China has been observed to be constant, however, a substantial production cut has propelled the commodity’s prices,” said a source.
SteelMint assessed Ferro Chrome offers from India at 92 cents/lb CIF China, 96 cents/lb CIF Korea and 97 cents/lb CIF Japan. However, a producer source mentioned inquiries from Japan is consistent but they might resist to elevated prices as they are getting ample offers from India.
Chrome Ore supply from South Africa has also deteriorated due to the winter season in the region, helping Ferro Chrome prices propel upwards. The UG2 Chrome Ore price is firm at around USD 210-215/MT.
The European benchmark price for Q3 was disclosed at USD 1.38/lb, which is much higher than the expectation, marginally down from Q2 benchmark price. However, the same might not affect the European market significantly on the backdrop of limited demand from Europe as part of a seasonal slowdown.
In line with the Chinese market, the Indian prices also remained steady at around INR 82,000/MT (Ex-Odisha). Few deals were also heard to be concluded at INR 83,000/MT.
As the environment policy keeps playing a weighing role on Chinese Ferro Chrome supplies, it is expected that there is further room for price increase subject to onward verification with the revelation of new tender price by Stainless Steel mills in July.
Leave a Reply