Prices in the ferro chrome market remained under pressure, as most market participants hold a pessimistic outlook towards the future market trend.
Domestic offer price for high carbon ferro chrome is unchanged from last week. The mainstream price of HC ferro chrome 60% min. is ranging from INR 64,500/MT (Ex-Works Odisha). A producer source remarked that the prices are under pressure as some producers are offering aggressively to clear their stock. Domestic offer price for ferro chrome remain at the same level, as Indian producers of ferro chrome had earlier cut offers to solicit trade.
Chrome ore prices have risen, but there is no change in ferro chrome prices. Market watchers are of the view that HC ferro chrome market is likely to remain dormant in the coming month as demand is unlikely to pick up.
OMC Chrome Ore Prices Rise in May Auction
Odisha Mining Corporation (OMC) chrome ore prices saw increment for most of the grades in e-auction held on 11 May’15. It is to be noted that OMC had offered 26,000 MT of chrome ore in the auction on 11 May’15. Out of this, 25,200 MT were friable ore and 800 MT was concentrated chrome ore. Of this, 24,000 MT is from the South Kaliapani mines of OMC.
Chinese Market
SteelMint assessed the spot price of South African-origin charge chrome (48-52% Cr) at 77-78.5 cents/lb CIF China. The spot price of Indian-origin high carbon ferro chrome (58-60% Cr) at 79-80 cents/lb CIF China, down slightly from last week on thin trading as price expectations of buyers and sellers differed.
A Shanghai based trader said that buyers were only keen to procure Indian ferro chrome at 78 cents/lb CIF. However no offers were heard as low in the market this week.
Indian producers were offering ferro chrome at 79 cents/lb CIF but reckoned the price was negotiable to 78.5 cents/lb CIF. However, Chinese buyers were not looking at imports because there is sufficient inventory and may not start procuring until next month.
The market was also waiting for major Chinese stainless steelmakers to decide on their June purchase prices, and most say they expect a rollover from May.
Japanese Market
SteelMint assessed imported spot high carbon ferro chrome was at 84 cents/lb CIF Japan, unchanged W-o-W .
No bid, offers or deals could be confirmed this week.
A trader from India stated, “Ferro chrome consumption has been affected by low stainless steel production in Japan and South Korea, and there are stocks available with end-users. There is no one in the market to buy raw material, not just ferro chrome, but other ferro alloys too.”
Exchange Rate : USD 1 = INR 64
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