Indian Ferro Chrome Producers Ruffled by Low Price Acceptance in China

10 April 2017

Indian HC ferro chrome prices mostly flat on Chinese buyers’ price resistance. The Chinese stainless steel mills have raised their purchase prices by RMB 300-350/MT for Apr’17 which is, lower than what was the expectation of the market participants. “Though we have pushed for higher price, the situation did not go as per our expectation. The Chinese buyers are reluctant about paying anything higher than 110 cents/lb CIF China for Indian HC ferro chrome,” mentioned a producer source.

However, taking cue from increased purchase price by Stainless Steel mills in China, Japanese and South Korean buyers have started accepting a marginal increase in prices. Indian HC ferro Chrome offers for CIF Japan and South Korea is at 117 cents/lb and 116 cents /lb respectively.

In domestic market, the producers are observed to be selling aggressively and offers are down by INR 1,000/MT at INR 97,000/MT (Ex-Odisha).

The strengthening of INR against USD have decreased the revenue margin for the exporters, forcing their attention back to the domestic market. There is a bearing sentiment in the market and the short-term expectation is for prices to remain under pressure and downward price movement is possible, on the back of low Ferro Chrome demand from China.

Source – steelmint