Spot prices for both Indian high carbon ferro chrome and South African charge chrome exports have remained relatively unchanged over the week into China and Japan, but downward pressure is building up with the latest procurement price cuts by Chinese stainless producers.
Baosteel has set the January purchase price for high carbon ferro chrome, which is down by RMB 660/MT, month-on-month to RMB 4,80/MT. This around 6 cents/lb or INR 8,800/MT below last month’s price.
Similarly, China’s Tsingshan Holdings, the country’s largest stainless producer, earlier announced plans to cut its January ferro chrome procurement price by RMB 620 (USD 94) month-on-month to RMB 5,000/MT.
Taiyuan Iron & Steel, also announced that it would cut its January procurement price by RMB 640 to RMB 4,780/MT.
These latest purchase prices from the Chinese stainless producers will be equivalent to no higher than 58 cents/lb CIF China with chrome content at 50%, SteelMint assessed, which will definitely impose pressure on imported charge and ferro chrome prices.
“Suppliers both from Africa and India will need some time to digest China’s dramatic price change and decide on what prices to offer to China,” a Shanghai-based chromium importer commented.
Over the week, Japanese market has remained in the festive mode and not much interest in ferro chrome has been spotted in the market at all, a Japanese trader said, and the Japanese ferro chrome spot import price, thus, stands at 66-67 cents/lb CIF Japan.
So far, there has been no news on the quarterly price settlement for January-March supplies to Japanese stainless producers, market sources said.
Domestic Ferro Chrome Prices Eases Again
Ferro chrome market stalled as buying interest dried up and stainless steel mills become more wary of procurement.
Prices in the ferro chrome market were heard to be lower this week, hitting the range of INR 57,000-57,500/MT (Ex-Odisha), with a possible feeling among the producers that a further reduction in prices is possible. Ferro chrome market has remained lull and sparse trading activity has been ongoing since months.
“Buying interest as a whole is still pretty weak in the market. Producers are held with high inventory and heavier supply in the market has weighed down on prices,” said a producer based in Odisha.
On the future outlook, market participants remained worried over the market situation, as they think that prices could be poised for a substantial drop since demand in the export as well in the domestic market remained very low, and export relizations are set to be substantially lower than the domestic market.
Leave a Reply