A week ago the prices had started to retreat, but after the European benchmark Ferro Chrome price for the first quarter of 2017 was announced, the Chinese prices are expected to go up again, with deals likely to be concluded between 125-130 cents/lb CIF China. However, Indian producers are hoping for a number close to 135 cents/lb CIF China.
The benchmark price for the first quarter of 2017 rose to 165 cents/lb, from 110 cents/lb previously.
There was a marked difference in price ideas at the start of the week and in the days following the announcement of the Ferro chrome benchmark price.
Ferro-chrome prices have been rising sharply since October, driven by soaring chrome ore prices and tighter supply.
Prices in other Asian markets are catching up with those in China for the past couple of weeks, having previously lagged behind the rally.
Prices in Japan edged up to 130 cents/lb, CIF, from 125 cents/lb previously, as prices in South Korea rolled over at 125 cents/lb CIF. Both markets have seen limited spot activity in recent months.
Domestic Ferro Chrome Market
The mainstream price of HC Ferro Chrome 60% min. is around INR 110,000/MT (Ex-Works Odisha). Although, for small tonnages producers are quoting much higher prices.
For, producers that don’t have captive Chromite mines and power, their cost of production was slightly above INR 1,00,000/MT in Q3 (Oct-Dec’16).
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