India: Ferro Chrome Prices Unchanged W-o-W Despite Timid Demand

Indian Ferro Chrome Producers maintained the prices despite low demand. In the global market sentiments for Ferro Chrome remained weak. “It is mostly a buyers market and the prices were completely dependent on the negotiation levels of buyer and the producers”, a producer said, however, even the Chinese market is experiencing similar situations.

Due to the sluggish market conditions of Ferro Chrome, the ore prices are also coming down and are at the bottom levels for UG2 Chrome Ore CIF China. However, even after going down to such lower levels, Chrome Ore producers cannot break a deal as the buyers are interested at much lower levels. Prices of Ferro Chrome in the Chinese market is at lower levels and deals are holded off by both sides of the table and anything can be predicted after the release the next tender prices from major Chinese mills. Meanwhile, Indian producers are willing to focus more on the domestic market as they are facing limited inquiries in the global market and no demand from China. Japanese Market is also flooded with material and the producers in Japan and South Korea are offering the material at prices close to their production cost.

Domestic price for Ferro Chrome in India is assessed to at around INR 66,000/MT Ex-Jajpur. Export prices for CNF South Korea (10-50mm, HC 60%) is 75 cents/lb, for CNF Japan (10-50mm, HC 60%) is 76 cents/lb and for CNF China (10-150mm, HC 60%) is around 72 cents/lb.

On the future outlook, there is a very little chance of Ferro Chrome market to rebound. The producers were able to keep the prices stable for now. Although, the liquidity crunch is low, but the chances of further reduction in prices cannot be ruled out.