Indian Ferro Chrome market lacks demand and prices have corrected marginally W-o-W.
India Ferro Chrome producers are witnessing limited demand as sellers claim to conduct very few deals and indicate that they would rather hold than sell at such low prices.
“The Ferro Chrome prices have already reached its bottom and have no room left to go down further,” said a producer source. He also added that reducing the prices further is not feasible as it will be below cost.
SteelMint assessed Ferro Chrome offers at INR 70,000/MT (Ex-Odisha). However, few deals have also been concluded at lower levels.
Few market participants are of the view that the Indian stainless steel manufacturers who had earlier halted production may now resume their production and demand for Ferro Chrome might regain grounds.
Inquiries from China is also observed to be limited as Indian sellers are finding it difficult to conclude deals. The purchase prices announcement by Chinese stainless steel majors has also restricted the demand for Indian Ferro Chrome.
The export offers are assessed at 81 cents/lb CIF China, while 86 cents/lb CIF Korea and 87 cents/lb CIF Japan. Japan and Korea are also observed to be cautious and only small quay deals are being concluded in those regions.
On the future outlook, Ferro Chrome prices are expected to remain stable as producers may not reduce the prices further despite the sinking demand.
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