Indian Ferro Chrome Offers Move Up on Anticipated Demand

Indian Ferro Chrome producers raised their offers as bullish sentiment paves its way through.

Demand for the commodity in the Indian market remains firm and deals are being concluded actively.

“Major stainless steel mills are purchasing Ferro Chrome in the range of INR 82,000-83,000/MT while deals for smaller size quantities are taking place at around INR 83,000-84,000/MT,” said a producer source. SteelMint assessed Ferro Chrome prices at INR 83,000/MT (Ex-Odisha).

“The domestic Ferro Chrome price is expected to remain firm, however a slight uptick in the coming days can’t be ruled out,” said a producer source while hinting towards a further rise in prices.

Post-lunar year holidays, only one or two deals are heard to have been concluded with Chinese buyers, while a source claimed that the Chinese market is witnessing limited activity, and the coming week will give a clearer picture.

Indian producers are quoting 100 cents/lb CIF China while one deal was heard to have been concluded at 99.5 cents/lb CIF China but most of the producers haven’t yet been able to realize at the aforementioned level in China.

Inquiries from Japan and Korea still remains very limited as they are keenly waiting to see what tender price the Stainless Steel mills from China release for March. However, its export price maintaining stability at 102 cents/lb and 101 cents/lb for South Korea.

Japan and South Korea are observed to be in a wait-and-watch mode as they postpone their purchase to get a clear market direction which depends on China’s stance after its holidays.

“There has been an anticipation that Chinese major stainless-steel firms will increase their purchase price to the current spot levels,” said a source suggesting that the current spot price is higher than the tender price of 7,900 Yuan and hence they will level it up or even exceed the current prices depending on the requirement.

On the future outlook, Ferro Chrome offers are expected to witness a northward movement on the backdrop of strong demand coupled with rising Chrome Ore prices.