Indian Ferro Chrome market remains bullish on rising demand and limited supply.
The Ferro Chrome market has witnessed a supply crunch as some of the small-scale producers in Durgapur faced power supply issue which restricted their production.
“Only the major Ferro Chrome producers have inventory,” said a source referring to the supply of the commodity.
SteelMint learned that one Ferro Chrome producer has stopped offering Ferro Chrome in the market as they have started with stainless-steel production.
The Ferro Chrome offers are assessed at INR 80,000/MT (ex-Odisha) while some of the small quantity deals are heard to have concluded at upper levels.
The market sentiment in China has improved following the price release by major stainless-steel mills coupled with rising UG2 chrome ore prices.
However, a source expressed concern as the ongoing National Day holiday might slow down the Chinese market but prices are likely to shoot up post-holidays. The Chrome Ore inventory on Chinese ports is going down, hence it might affect its prices, he further added.
“We have not been able to deal in spot Chinese market as they are preferring domestic commodity at a lower price, however, Indian producers with long-term deals have reportedly sold their commodity,” said a producer source.
Demand from Japan and Korea is observed to be a matter of concern for the Indian producers due to thin trade levels. SteelMint learned that the buyers from Japan and Korea are waiting for the European Ferro Chrome benchmark to release.
SteelMint assessed export offers to be unchanged at 83 cents/lb CNF China, 86 cents/lb CNF Korea and 87 cents/lb CNF Japan.
Moving ahead, market participants are bullish on the Ferro Chrome as they expect the prices to edge up further on improved stainless-steel market coupled with rising Chrome Ore prices.
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