VINACHEM

Domestic high carbon ferrochrome (50% Cr) prices were stable at Yuan7,100-7,300 ($1,120-1,151)/mt this week affected by thin trading activityahead of the long holiday in China, industry sources said late Thursday.

A Shanghai-based trader reported no spot deals this week. "Domesticdemand for ferrochrome from the stainless steel sector remains weak andprices are hardly moving much," she said.

A Tianjin-based trader echoed her view, adding that there had been nobuying inquiries this week. "We are waiting for more market direction afterthe long holiday in China," she said. China's markets will be closed fromSeptember 30 to October 7 for National Day holidays.

A third trader also reported no business this week. "Trading activityhas been quiet and I heard no one is buying," he said.

Meanwhile, offer prices for Indian-origin high carbon ferrochrome (6-8%C, 58-60% Cr) into China were also steady at 85-87 cents/lb CFR this week,unchanged from a week ago, according to Platts assessments.

But despite thin trading activity, some Indian traders were offeringhigher prices at around 90 cents/lb CFR China this week as the weaker dollaragainst other major currencies contributed to firmer commodity prices, thefirst trader said. Metals priced in dollars become cheaper to investorsholding other currencies when the dollar is weak.

"We received higher prices from India but we won't buy as the marketlevel is lower than their offer prices," she said, adding: "I doubt anyChinese buyers would pay 90 cents/lb. The import trade has been slow asdomestic prices remain cheaper than overseas [ones]."

A fourth trader added that he had also heard higher offer prices fromIndia to China at around 90 cents/lb CFR China. "Overall market sentiment forferrochrome remains bearish as demand from the stainless steel sector hasbeen weak and the situation is likely to continue in the fourth quarter ...no one is willing to stock up much material for the time being due to marketuncertainties," he said.