Indian Ferro Chrome prices have increased by INR 1000/MT W-o-W owing to the escalation in the Chinese Ferro Chrome prices. There is a positive notion in the market for exports, most of the producers are concluding deals with the merchant exporters. However, the domestic demand for Ferro Chrome remains near to absent; as the Stainless-Steel mills are yet to start procuring.
Indian economy is passing through an unprecedented phase, and this has adversely affected Stainless Steel demand from downstream industries like automobile and Infrastructure. Also, demand from the retail market like utensils, remain closed. This in line has squeezed the demand for Ferro Chrome in the domestic market and the limited buyers available are also aggressively negotiating for lower prices.
The prices for Ferro Chrome assessed by SteelMint are as follows:
Ex-Jajpur: INR 64,000/MT,
CNF China: cents 68/lb,
CNF Japan: cents 71/lb, and
CNF South Korea: cents 70/lb.
Chinese Market:
Chinese Ferro Chrome prices have been trending up since the past few weeks as the demand has improved in the country. In addition to this, the South African Chrome ore prices increased by approximately 22% over the month as the shipments got deferred due to logistical issue. Inventory at the Tianjin Port, China has been stable at 3.2 MnT with a marginal decrease of 0.6 MnT W-o-W. Industry experts believe that the prices may come down once the logistical issue has been resolved, and South African Chrome Ore supplies reach Chinese shores.
Outlook
The liquidity crunch faced by the producers are severe and therefore, the inclination towards merchant exporters might sustain for now.
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