India's domestic Ferro Chrome price rises over devalued currency

Indian producers of HC Ferro Chrome have raised offers in the domestic market owing to the weakened Rupee (Indian Rupee fell to an all-time low of 60.71/USD); making exports a more lucrative option for the manufacturers. The mainstream domestic price of HC Ferro Chrome 60% min. is in the range of Rs. 65,000-66,000 /MT Ex-Works basis. However, some buyers also claim to have offers at Rs. 64,000-65,000 for bulk purchases. Another manufacturer based in Central India mentioned that overseas demand has increased, prompting higher offers in the domestic market. The current price of HC Ferro Chrome Ex-Raigarh stands at Rs. 67,000 /MT.

Export offers for HC Ferro Chrome (Grade 60%) currently is in the range of 0.84-0.85 USD/Lb FOB India, and 0.86 – 0.88 USD/Lb CIF China. The devaluation of the Indian Rupee against the US Dollar has allowed the Indian suppliers to lower their offers to consummate trade. However, Indian producers have reported of insufficient demand from the overseas market. The Chinese domestic price of HC Ferro Chrome (Grade 50% Cr.) stands at Yuan 7000-7100 /MT (0.86-0.87 USD/Lb). It is to be reported that China's Baosteel and Jiuquan Iron & Steel rolled over their July Ferro Chrome purchase price from June, while Shanxi Taigang Stainless Steel raised its bid price by just Yuan 50/mt.

SteelMint learned that South African Charge Chrome enjoys a premium of around 10 Cents/Lb over the Indian Ferro Chrome for having 0.01-0.02% lower Phosphorus content. Although the gap between the South African Charge Chrome quarterly contracts and the Indian spot price remains vast. Nippon Steel & Sumikin Stainless (NSSC) — Japan's largest Stainless Steel producer has set the Charge Chrome price at 1.35 USD/Lb CIF Japan for the second quarter. Aided by these price gaps and the weakened South African Rand is allowing South African producers to participate aggressively in the market.

The short-term expectation is for prices to remain under pressure and further downward price movements is still possible, on the back of slow Ferro Chrome demand worldwide.