Indian Ferro Chrome prices increased as the supply concern intensifies in the Ferro Chrome market. Few producers of Ferro Chrome have shifted to Manganese alloys and many of the major producers of Ferro Chrome have reduced their production levels to significant levels to manage with the earlier continuous falling market. These production cuts have created supply shrinkage in the market and the prices have increased. Producers are in a wait and watch mode and expect the demand from the export market to return after the Chinese New Year holidays. But, if the export demand doesn’t improve, there are chances that the prices may again go down.
In the domestic market, Ferro Chrome Prices are assessed to be at around INR 65,000/MT Ex-Jajpur. Meanwhile, it is also heard that the producers are quoting a much higher price, but acceptance for the same is still lagging. In the export market, the prices remain unchanged. Offers for CNF South Korea (10-50 mm, HC 60%) is at around 65 cents/lb, CNF Japan (10-50 mm, HC 60%) is at 66cents/lb and for China, the prices are at around 62cents/lb CNF. Trading in the export market remained absent amid ongoing holidays.
On the future outlook, the prices may increase for now. However, market participants are waiting for direction from post-Chinese holidays demand.
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