India: Ferro Chrome Market Remains Dull With Thin Trading

Indian Ferro Chrome prices are stable despite selling pressure, as Producers are bound to increase the prices, due to the current depreciation of Rupee. Sources said that dealing at any price under INR 66,000/MT in the domestic market won’t be feasible for the producers to trade at. According to credible sources, one of the major Ferro Producers was quoting INR 66,000/MT but no trades were concluded at such rates.

Overall sentiments remain weak in the domestic and global market as well. Producers in China believe that the major steel mills would increase HC Ferro Chrome tender prices by RMB 100-200/MT (USD14.18-28.37/MT) in the last week of August. Thus, Ferro Chrome producers in China are in no hurry to sell though they have adequate stocks now.

They plan to sell after the price increase.As most market players are in a wait-and-watch mode before the release of a new round of Tender prices, the producer believes that HC Ferro Chrome prices would keep steady in the coming week. Also in the domestic market, the situation of Ore availability is in question now, as the Odisha govt. has passed the rule that only GPS enabled vehicle can be used for transportation of minerals from the mines to the plants, which has affected the transportation line altogether.

Such sentiment for Chrome Ore has put the Ferro Chrome producers under more pessimistic thoughts and they are more inclined towards raising the prices.has passed the rule that only GPS enabled vehicle can be used for transportation of minerals from the mines to the plants, which has affected the transportation line altogether. Such sentiment for Chrome Ore has put the Ferro Chrome producers under more pessimistic thoughts and they are more inclined towards raising the prices.

Domestic Prices for Ferro Chrome in India is assessed in the range of INR 64,000-65,000/MT. However, prices in the export market remained unchanged. Offers for CNF South Korea (10-50 mm, HC 60%) is at around 73 cents/lb, CNF Japan (10-50 mm, HC 60%) is at 74cents/lb and for CNF China the prices are at around 71 cents/lb. A few producers reported that there was a query from South Korea for bulk quantity but deals held back as the buyer and the supplier couldn’t settle on a price.

On the future outlook, the prices of Ferro Chrome may stay at current levels till the demand returns.