Concerns over supply tightness in China and higher domestic prices help to push prices for imported material.
Chinese Market
The spot price of South African-origin Charge chrome (48-52% Cr) stands at 79-80.50 cents/lb, CIF China; has gone up from 78-80 cents/lb, CIF a week ago. Some buyers have raised price expectations after Chinese domestic Ferro chrome prices rose recently.
Domestic spot prices of 50% Cr Chinese HC Ferro chrome had risen by another RMB 50/MT (USD 8/MT) W-o-W to RMB 6,350-6,500/MT (equivalent to 78-80 cents/lb). Sources also said Chinese Ferro chrome supply was tight after production halts in the country, and because suppliers were limiting sales in anticipation of higher prices.
Meanwhile, Indian-origin HC Ferro chrome (58-60% Cr) was assessed at 81-82 cents/lb, CIF China; unchanged from a week ago as buyers& sellers maintained price expectations.
Most buyers, however, were unwilling to pay 81 cents/lb, CIF or above as Chinese domestic prices had yet to reach such levels and imports were only attractive at lower than or at the same levels as local material, assessed SteelMint. Also, Chinese Yuan had recently depreciated against the US dollar, making imports more costly for Chinese importers.
“Unless we get a decent price from China, we won’t sell to China,” said an Indian producer.
Japanese Market
The spot price of HC Ferro chrome imported into Japan stood at 86-88 cents/lb, CIF Japan; has moved up from 86-87 cents/lb CIF Japan last week on a deal reported at 88 cents/lb, CIF Japan.
A deal for 100 MT was concluded at 88 cents/lb, CIF Japan for January loading from eastern India. Indian producers said they would not sell below 88 cents/lb, CIF Japan.
Trading was thin as participants were awaiting results of the negotiations between South African producer, Glencore and Japanese stainless steelmaker, Nippon Steel & Sumikin Stainless for the Q1 contract price.
Indian Market
In India, Ferro chrome demand expectation for the coming quarter is bleak as Stainless steel prices have been low. With a difficult steel market environment and low Stainless steel prices, Ferro chrome producers have been operating at low levels. Market participants reported of a quiet market, with little or no enquiries. Indian HC Ferro chrome prices corrected marginally as demand continues to be thin. Current price for 60% grade is settled at around INR 69,000/MT (ex-works, Odisha) and INR 70,000/MT (ex-Raigarh).
Exchange Rate : USD 1 = INR 63.7
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