India: Ferro Chrome Prices Up by INR 2000/MT W-o-W

Indian Ferro Chrome Prices have been under pressure for a long duration, however, despite low demand and thin trading activity, the prices skyrocketed in the domestic market in line with increased Chrome Ore Prices in the recent auctions. Meanwhile, most of the producers are out of material to supply and thus, the supply situation for both the raw material and Ferro Chrome are tight.

Market participants believe that the prices are bound to go higher as they are out of ore inventory and the cost for raw material increased sharply, which will affect the production cost.

Steelmint assessed the Ferro Chrome Prices at INR 68,000/MT, moreover, market expectations are that higher prices will find acceptance by next week in line with higher Chrome Ore prices and low inventory with producers. Prices in the export market remained unchanged due to the Chinese national day holidays. It is expected that as soon as the market resumes in China, the demand might regenerate and the prices may go higher. Tsingshan and Bao Steel both declared their prices for October deliveries. Tsingshan increased its tender Prices by RMB100/MT to RMB 6396/MT and Bao Steel increased its prices by RMB 200/MT to RMB 6500/MT. Offers for CNF South Korea (10-50 mm, HC 60%) is at around 75 cents/lb, CNF Japan (10-50 mm, HC 60%) is at 76 cents/lb and for CNF China the prices are at around 72 cents/lb.

On the future outlook, the prices are expected to go higher in line with the multitude of factors affecting the domestic and global markets as well.