Indian Ferro Chrome prices came down marginally W-o-W amid intense selling pressure on the absent export market. Ferro Chrome Smelters have had to allocate more quantity in the domestic market which has created a situation of oversupply in the domestic market. Producers reported that the buyers are inquiring for Ferro Chrome but asking the material at much lower prices.
In the domestic market, Ferro Chrome Prices are assessed to be at around INR 61,000-62,000/MT Ex-Jajpur. Meanwhile, it is also heard that the buyers are showing interest at even lower prices, and 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 due to CoronaVirus outbreak.
Chinese Ferro Chrome Market:
At present, HC Ferro Chrome price is mainly stable but market enquiries are sluggish with few spot deals, indicating weak support on price. It is learnt that spot transactions on the market are few with limited enquiries from stainless steel mills due to the epidemic, though individual hiked tender price. Because of the weak market of stainless steel recently, some mills may go for a production cut. Without adequate transactions, HC Ferro Chrome price is lacking solid support, though currently, the price remains stable. The downward trend of steel products may, to some extent, reduce Ferro Chrome demand, which is noteworthy.
Major Stainless steel producing company in China, namely TISCO and Tsingshan, rolled over their purchase prices for Ferro Chrome despite the increase in the Ferro Chrome prices amid supply disruptions of raw material due to novel Coronavirus. Many smelters in China reduced its production to significant levels amid insufficient chrome ore inventory and dire cashflow needs. Meanwhile, after the release of the tender prices, there is a pessimistic sentiment running down the market as the smelters are worried about operating at much lower margins. However, the downward Stainless steel market cannot afford higher Ferro Chrome prices in such adverse market conditions.
On the future outlook, the prices of Ferro Chrome may rebound after the Chinese Stainless Steel producers return in the market. However, till then the prices will continue to remain under pressure.
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