High Carbon Ferro Chrome market started the week on a bearish note, with prices pressured by lower deals and indications amid a gloomy near-term outlook.
In the domestic market prices for HC Ferro Chrome remained unchanged from last week as buy-side interest remained thin. Current prices for HC Ferro Chrome (60% grade) are hovering at around INR 69,500-70,000/MT (Ex-works Odisha). In Raigarh, prices stand at INR 71,000/MT. Indian producers reported, although OMC has increased its prices for all grades, they were unable to raise their offers. This is because there is weak domestic and overseas demand.
[su_quote]A producer source from Odisha remarked, “Current transaction prices in the domestic market are cutting our production cost. We are now already selling at a loss.”[/su_quote]
Chinese Market
Indian-origin High Carbon Ferro Chrome (58-60% Cr) is offered at 83-85 cents/lb CIF China and South African charge Chrome (48-52% Cr) at 83-84 cents/lb CIF China. Both prices were unchanged from the previous week amid limited offers, while no deals were confirmed.
[su_quote]“Not many people are asking for imports in China due to the difference between Chinese domestic prices and offered prices. Many are buying in the domestic market instead,” reported a trader from India.[/su_quote]
Chinese buyers were also shunning imports because of the depreciating RMB relative the USD. Also with this, the pending outcome of second quarter contract settlements between European steelmakers and South African producers.
China’s domestic prices of high carbon Ferro Chrome (50% basis Cr) were at RMB 6,700-6,900/MT (82.5-85 cents/lb) delivered, with 17% value added tax. The prices were unchanged for the second consecutive week.
Market watchers are of the view that HC Ferro market to remain dormant in the month of March and demand is unlikely to pick up. SteelMint assessed that weak demand has lead to softening of prices, though further downfall in prices is not expected.
Exchange Rate: USD 1 = INR 60.51
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