Indian Ferro Chrome prices dropped in the week by INR 2000/MT W-o-W amid deep selling pressure. Earlier Ferro Chrome producers waited and stocked Ferro Chrome in anticipation of robust demand post the Chinese New Year holidays, however, the Corona Virus has got the producers off guard. The producers in India is experiencing an issue of Cash flow and are forced to allocate a higher quantity in the domestic market. Meanwhile, in the domestic market, the Stainless Steel manufacturers have enough inventory and therefore are asking for material at much lesser prices. As a result, the suppliers are having to give in and have reduced the prices of Ferro Chrome.
The Chinese market is expected to open next week, however, with the health ailments going on there is little expectation that the market will operate smoothly anytime soon. It may take a few more weeks to regain momentum in the Chinese Steel market, a market participant shared with SteelMint. The prices in the domestic market are at INR 63,000/MT Ex-Jajpur. Meanwhile, the exporters are in a wait and watch mode and hold a bearish outlook.
On the future outlook, the prices of Ferro Chrome may come down further but only at marginal levels as it is now a buyers’ market.
Leave a Reply