Ferro chrome prices remain at low levels. Further correction is expected in the month of May.
SteelMint assessed that current offers for High Carbon (HC)Ferro chrome (60% grade) are at INR 66,000/MT (ex-works, Odisha) and INR 67,000/MT (ex-Raigarh). The price of Stainless steel flats has come down by around INR 2,500/MT and is trading between INR 71,000-72,000/MT. This will further put a dent in the demand for Ferro chrome, until sluggishness in Stainless steel market continues.
“The sentiment in the Ferro chrome market is bearish and prices could retreat further,” remarked a producer from Odisha. Outlook is that many expect market conditions will not change much, and see no recovery in May.
Chinese Market
SteelMint assessed the spot price of India origin HC Ferro chrome(58-60% Cr) unchanged W-o-W at 79-81 cents/lb CIF China, amid slow spot trading in the market. An Indian producer sold standard lump material at 80.5 cents/lb CIF.
While demand in the spot market was low, the Indian Ferro chrome price remained supported by limited spot supply and the recent export rebate cut. India cut its export subsidy rate to 2% from 4% for Ferro chrome exports to a number of Asian countries, including China, starting April 1.
An official with the Indian producer said that 80.5 cents/lb CIF was not a “very good price” for his company, but he was amenable to selling to China, which still has an export subsidy rate of 2% relative to zero subsidies for other markets like Europe.
The domestic spot price of 50% Cr Chinese high-carbon Ferro chrome was assessed unchanged W-o-W at Yuan 6,400-6,600/MT (equivalent to 78.8- 81.3 cents/lb) — including 17% VAT and delivery.
Sources said Chinese domestic supply was not as tight as it was a month or two ago, but buyers still needed to pay slightly higher prices for prompt delivery as local Ferro chrome producers were focused on supplying long-term contracts and keeping inventory levels low.
Meanwhile, the spot price of South African-origin charge chrome (48-52% Cr) at 78-79.5 cents/lb CIF China, unchanged W-o-W amid a lack of deals and offers.
South African power utility Eskom started power shedding programs to cope with power shortage this month, but this had little impact on the market. South Africa is the largest Ferro chrome supplier in the world. But the power crisis, which could affect Ferro chrome production, has not triggered spot demand.
Exchange Rate : USD 1 = INR 63.3
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