Indian Ferro Chrome prices remained stable at INR 66,000/t despite dull demand in the domestic market. Stainless Steel mills are still abstaining from procuring Ferro Chrome as the market is yet to pick up in India. However, the demand from China remains good and most of the deals are being concluded in the export market either directly or through merchant exporters. Producers have increased the prices last week in line with the increased Chinese spot prices for Ferro Chrome which was further supported by the increased tender prices from major Stainless-steel mills in China.
The prices for Ferro Chrome assessed by SteelMint are as follows:
Ex-Jajpur: INR 66,000/t,
CNF China: cents 71/lb,
CNF Japan: cents 73/lb, and
CNF South Korea: cents 72/lb.
Chrome Ore
UG2 prices remained comparatively stable in line with the tepid demand from China. However, it is largely dependent on the state of supply from South Africa. According to the local government’s directive, the production should have increased from 1st June. However, the ground reality remains patchy as many miners are cautious over the outspread of the infection amongst the workers. However, some miners have ramped up the production to full capacity, while others have been working with 50 % capacity or below. Although the production rates have been improving, the same is not true for logistics. There are many bottlenecks, as many parts in South Africa are under partial lockdown, the shipments are getting delayed by weeks. According to market participants, the worst is yet to come to South Africa and the cases might rise with the increase in the production levels. Thus, the logistics may take weeks or even months to get streamlined. The exports in April fell drastically mostly because of the logistics concern, the same is expected to happen for upcoming months.
Future Outlook
The prices of Ferro Chrome might continue to be at the same levels for now as the export inquiries are strong. The Chinese inventory is being used up due to stable internal consumption, however, the replenishment is still an issue, which might increase the Chrome ore prices by marginal levels in the coming weeks.
Leave a Reply