Indian ferrotitanium market seeing downward price corrections on weak demand
2015-07-30 09:24:04 [Print]
BEIJING (Asian Metal) 30 Jul 15 - Basically on weak demand, domestically-produced ferrotitanium 30%min prices are marginally down by INR2.00 /kg (USD0.10/kg Ti) to INR143-148/kg (USD7.45-7.71/kg Ti) ex works but this is yet to impact on improving demand and producers fear a further downward price correction to INR140/kg (USD7.29/kg Ti) ex works is possible, especially from aggressive producers.
A trader disclosed mid-week that the company got an offer of ferrotitanium 30%min grade material but because there were no firm requirements from potential end-users, the offer was declined. “We got an offer at INR148/kg (USD7.71/kg Ti) ex works which we could negotiate on 30-day payment term but we had to discontinue negotiations because we had no specific requirements from end-users,” remarked the source.
A domestic ferrotitanium 30%min producer lamented that it was forced to reduce monthly output by half to 10-12t on weak demand and still could barely manage to sell all at INR145/kg (USD7.55/kg Ti) ex works, revealing some were sold at below this price level but quickly added that all bids at INR140/kg (USD7.29/kg Ti) ex works were rejected.
“We don’t know maybe some producers have accepted bids at INR140/kg (USD7.29/kg Ti) ex works yet but we are not considering this for now,” remarked the source, adding the company would also have to reduce its prices for its regular customers but might be forced to insist on payment term not extending 30 days.
And for imported ferrotitanium 70%min grade material, sources confirmed that retail prices are down by INR5.00/kg (USD0.11/kg Ti) to INR260-270/kg (USD5.80-6.03/kg Ti) ex warehouse and a trader in Mumbai described buying activity as sluggish but expressed confidence the market would rally by late August on the sentiment that few import deals are currently being concluded because of high exchange rate of Indian Rupee (INR).
Exchange rate: INR64.0:$1
A trader disclosed mid-week that the company got an offer of ferrotitanium 30%min grade material but because there were no firm requirements from potential end-users, the offer was declined. “We got an offer at INR148/kg (USD7.71/kg Ti) ex works which we could negotiate on 30-day payment term but we had to discontinue negotiations because we had no specific requirements from end-users,” remarked the source.
A domestic ferrotitanium 30%min producer lamented that it was forced to reduce monthly output by half to 10-12t on weak demand and still could barely manage to sell all at INR145/kg (USD7.55/kg Ti) ex works, revealing some were sold at below this price level but quickly added that all bids at INR140/kg (USD7.29/kg Ti) ex works were rejected.
“We don’t know maybe some producers have accepted bids at INR140/kg (USD7.29/kg Ti) ex works yet but we are not considering this for now,” remarked the source, adding the company would also have to reduce its prices for its regular customers but might be forced to insist on payment term not extending 30 days.
And for imported ferrotitanium 70%min grade material, sources confirmed that retail prices are down by INR5.00/kg (USD0.11/kg Ti) to INR260-270/kg (USD5.80-6.03/kg Ti) ex warehouse and a trader in Mumbai described buying activity as sluggish but expressed confidence the market would rally by late August on the sentiment that few import deals are currently being concluded because of high exchange rate of Indian Rupee (INR).
Exchange rate: INR64.0:$1
Ferro-titanium 70%min In warehouse Rotterdam
Unit:USD/kg Ti
China ferrotitanium jproducers' sales volume statistics by province by month
Unit: mt
