[ferro-chrome.com] The Chinese spot prices for imported high carbon ferrochrome and charge chrome into China rose this week following a recovery in the Indian rupee and South African rand against the US dollar.

The price for India-origin high carbon ferrochrome (58-60% Cr) was assessed at 84-85 cents/lb CIF China Friday, up from 83-85 cents/lb CIF a week ago. The price for South African charge chrome (48-52% Cr) was also assessed at 84-85 cents/lb CIF China on Friday, an increase from 83-85 cents/lb CIF China last Friday.

No deals could be confirmed this week but industry sources had indicated the tradable prices at the above ranges. Market sources had lifted their price ideas following an appreciation in the currencies.

An official with an Indian producer said he had received initial bids from Chinese customers at 84 cents/lb CIF, but his company is looking to negotiate further with the buyers.

 

"The Indian rupee had appreciated over the past three to four days so sellers would like to increase prices. But whether customers would accept higher offers remains to be seen," he said.

A Shanghai-based trader said her customer -- a stainless steelmaker -- said for imported material, the lowest price they are currently able to procure at is 84.5 cents/lb CIF.

"Materials below this price were available in mid-August, but they are no longer available now," she said.

Transactions and offers were generally sparse in the week as market participants are waiting for price indications from the October bid prices of majorChinese stainless steelmakers -- which are typically set in the second half of the month -- and settlement of the fourth quarter charge chrome benchmark price between South African producers and European steelmakers.

Some buyers were also holding back following a recent decline in nickel prices, which had affected Chinese domestic stainless steel prices as well, noted sources.

"We prefer to wait-and-see now...There is no direction in the market at the moment," said a major Asian buyer. The rupee has appreciated to 63.35 to the dollar on September 13 from 67.6 on August 28, while the rand had risen to 9.91 to the dollar on September 13 from 10.38 on August 28. Both currencies had started recovering in late August after mostly trending downwards since May.

The stainless steel sector is the largest consumer of ferrochrome.