The Chinese import price for Indian-origin ferrochrome (58-60% Cr) inched higher to 84-86 cents/lb CIF China Friday, from 84-85 cents/lb CIF a week ago, as Chinese buyers lifted their price ideas amid a strengthening Chinese yuan against the US dollar.
This week, one Indian producer sold at least 500 mt of ferrochrome to a Chinese trader at 85-86 cents/lb CIF main East China ports for end-February delivery. No other deals for Indian ferrochrome were heard, but this week more Chinese buyers pegged the tradeable price for Indian ferrochrome higher at 84-86 cents/lb CIF, compared with 84-85 cents/lb CIF a week ago.
"[A price of] 85.5-86 cents/lb CIF would be acceptable to us as Chinese domestic prices are around this range after the Chinese yuan appreciated," said a trader in North China.
Domestic spot prices of high carbon ferrochrome (50% basis Cr) in China were at Yuan 6,750-6,900/mt on Wednesday, equivalent to 84-86 cents/lb.
Sources also noted support for Indian offer levels due to a stronger Indian rupee against the US dollar.
Chinese demand for imports was generally weak as steelmakers have mostly stockpiled sufficient raw material to last through the Lunar New Year holidays, said industry watchers. In addition, many Chinese companies typically do not have extra funds to purchase inventory at this time of the year as they need cash for bonus payments to employees before the Lunar New Year holidays which begin at the end of January, sources said.
Meanwhile, deals and offers for South African charge chrome were sparse, with only two sources reporting offers at around 84-85 cents/lb CIF East Asia ports.
The South African charge chrome price (48-52% Cr) was assessed at 83-84 cents/lb CIF China on Friday, unchanged week on week, based on tradeable prices pegged by market participants.
One Hong Kong trader noted more interest for Indian ferrochrome relative to charge chrome. "We had offered both (ferrochrome and charge chrome) in the market but people said they don't want change chrome; that they've got enough in their warehouses," he said.
