Indian Ferro Chrome prices have increased yet again despite dull domestic demand. The prices in the Chinese market are up in line with higher Ore prices. Ferro Chrome producers in India are mostly inclined towards exports due to weaker value of Indian currency and strong buying interest from China. The higher allocation to the export market has resulted in low supplies in the domestic market. However, this has not led to a sharp rise in domestic Ferro Chrome prices owing to muted demand.
The logistical issues in South Africa has led to supply tightness in China, and hence, the South African Chrome ore price have escalated in the past month. The Stainless Steel market is also improving in China, thus, the bidding prices from various Stainless Steel mills were up by a hefty RMB 500/MT for June deliveries.
The chrome ore price in both overseas and domestic market remain unchanged. The Ferro Chrome prices are also firm but dragged by the weak transactions, the transactional rate has limited room for the further upswing. As a result, alloy plants, which already stockpiled enough feed recently, are hesitant at purchasing the now highly-priced Chrome ore, leading to thin trading in cargo at ports.
The Ferro Chrome prices are also firm in China but volume of transactions remain low, leaving limited room for further upswing. As a result, the Ferro Chrome plants, which already stockpiled enough feed recently, are hesitant at purchasing the now high-priced Chrome ore, leading to thin trading in cargo at ports.
The prices for Ferro Chrome assessed by SteelMint are as follows:
Ex-Jajpur: INR 66,000/MT,
CNF China: cents 70/lb,
CNF Japan: cents 73/lb, and
CNF South Korea: cents 72/lb.
Future Outlook:
Chinese plants are now gradually increasing their production for Ferro Chrome and in the rainy season it is expected that the capacity will be at its maximum, as the power tariffs are cheaper in rainy season, it will result to lower production costs. Therefore, there is a concern that in the coming months the prices may go down on limited import demand, but for now the Ferro Chrome prices may remain firm in line with higher Chrome Ore prices.
Leave a Reply