Despite the prevalence of low demand, Ferro Chrome producers decided against lowering their offers further.
“Though the demand is soft, less availability of commodity brought in an equilibrium in the market,” said a producer source discussing the stability in the market. He also mentioned this scenario as a possible event of a market upturn.
Another source added that a few buyers are negotiating for lower offers which do not satisfy our margins.
SteelMint assessed Ferro Chrome offers at INR 70,000/MT.
Chinese demand is also low as China does have sufficient level of inventory and recent declaration of purchase prices by Chinese major stainless-steel mills have created a benchmark for Indian Ferro Chrome offers to China.
SteelMint learned that Chinese ports have a satisfactory amount of Chrome Ore and there is ample domestic Ferro Chrome supply.
Export offers are assessed to remain unchanged at 80 cents/lb CIF China, 86 cents/lb CIF Japan and 85 cents/lb CIF South Korea.
On the future outlook, Ferro Chrome offers are expected to remain stable while some producer anticipates that limited availability of material may cause price upswing in the Indian market.
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