High Carbon Ferro Chrome market remained quiet as same last week, with sluggish demand and very low trade volumes.
High Carbon Ferro Chrome market remains static on sparse demand. Current prices for HC Ferro Chrome (60% grade) is hovering at around INR 69,500-70,000/MT (Ex-works Odisha). In Raigarh, prices stand at INR 71,000/MT. With the financial year-end there is less demand for the material. Demand in the overseas market also remained lull.
“Demand has been limited and there has been no real activity for such a long period,” remarked a trader from Odisha.
OMC Chrome Ore Auction
Odisha Mining Corporation (OMC) is conducting e-auction for sale of 62,000 MT of Chrome ore of different grades produced at South Kaliapani Chromite Mines and Sukrangi Chromite Mines of OMC in the Sukinda valley. Also, different grade of Chrome concentrate produced in COB Plant of OMC located within South Kaliapani lease in the district of Jajpur, Odisha. The break-up of the quantity has not yet been decided as it would be finalized by 02 Apr, 2014. The e-auction shall be held by MSTC on 07 Mar, 2014.
Price of Indian-origin High Carbon Ferro Chrome (58-60% Cr) at 83-85 cents/lb CIF China Friday, and South African charge Chrome (48-52% Cr) at 83-84 cents/lb CIF China. Both prices were unchanged on the week as a standoff between buyers & sellers continued.
Suppliers were reluctant to drop prices, saying they were close to, if not at breakeven levels, while buyers were seeking lower prices or refraining from importing.
A trader from India reported, “Chinese buyers are not interested in buying now as demand is not very good and may worsen with stainless production cuts.”
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 W-o-W. Other than a depreciating RMB against the US dollar, Chinese buyers were also holding off and waiting for major Chinese stainless steelmakers to set their April purchase price. It is being expected that steelmakers to cut their April prices.
Price of High-Carbon Ferro Chrome (62-65% Cr) offered to Japan stand at 88-89 cents/lb CIF unchanged from last week, amid slack trade as participants awaited the results of second quarter term negotiations.
Indian producers said that their price indications remained unchanged from earlier in the month amid lack of any market-moving developments
On the future outlook, market watchers are expecting the market to get better after mid April, until then prices are expected to remain steady.
Exchange Rate: USD 1=INR 59.92