Indian Ferro Chrome Offers Edges Up Despite Uncertainties
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Ferro Chrome producers raised their offers but the market participants are in a confused state, on the recent lesser-than-expected increase in Chinese mill's purchase prices.
Ferro Chrome purchase price set by Chinese mills have failed to align with rising Chrome Ore prices from South Africa and has created an uneasiness among the Chinese traders.
The marginal rise in tender price by the Chinese mills has fallen well short of market expectation creating confusion. The March purchase price set by Baosteel is at 8000 Yuan/MT (equivalent to 96 cents/lb), however, deals in the spot market were being concluded at higher levels.
"In view of the current price set the mills, the Chinese buyers are unwilling to accept high offers," said a producer source discussing the commodity's market in China. However, we are trying hard to push the prices, as the cost of production in China is also rising in line with high Chrome Ore prices, he added.
Considering no major changes in the Chinese market after disclosure of tender prices, Japan and South Korea reflected consciousness as their prices remain firm.
SteelMint assessed Ferro Chrome offers at 99.5 cents/lb CIF China, 103 cents/lb CIF Korea and 104 cents/lb CIF Japan.
A source providing his insight on the matter said: "Ferro Chrome prices witnessed a considerable spike recently while a recent hike in Chrome Ore prices is compensating the same". He further added that market direction will gain clarity within few days as buyers and sellers will reach a point of satiety.
Indian producers claimed to receive a positive response from the buyers in the domestic market. Ferro Chrome prices in the Indian market have shot up in line with the recently concluded OMC Chrome Ore auction, which received a healthy response, where an average bid price exceeds the set base price by around 20%. Ferro Chrome prices are assessed at 86,000/MT (Ex-Odisha).
On the future outlook, Ferro Chrome offers are expected to remain firm while market participants are eyeing for April tender prices to gain clearer market directions.
