Indian ferro chrome market is plagued with uncertainty as the producers of ferro chrome withdrew their offers from the market after OMC auctions. Chrome ore was booked at an average of 16% higher than the set base prices, and the base prices were also increased by 45% w.r.t. May’ 20.
One of the major producers remarked on the rising cost of production, “The cost of ferro chrome has to reach much higher, and the prices of below INR 70,000/t will be history now. As for the producers who are solely dependent on OMC, their raw material costing will only increase in a hefty manner”.
Meanwhile, another producer shared with SteelMint that right now, the market is quite uncertain. Although, the probability of an increase in the prices is 100%, what will be the offering levels, is still under discussion as stainless steel production is down on shortage of industrial oxygen in the country.
However, SteelMint has assessed the prices to be unchanged w-o-w, as we heard of only one deal being concluded at INR 70,250/t Ex-Odisha. Meanwhile, rest of the producers either quoted an unattainable price of INR 74,000/t and above, while others withdrew their offer.
Indian producers are still waiting for the Chinese tender prices to be disclosed. The Chinese buyers are expected to be back in the market next week and Indian suppliers are hopeful of revival in Chinese demand. However, in the current scenario, most of the producers are focused more on the domestic market.
One of the producers said, that there will a repulsion from the buyers’ side regarding the prices, as exports will not be viable with non-captive ore and domestic allotments will increase. Indian producers are in a wait and watch mode and are expected to release the prices in next two days, SteelMint’s expectation is the prices should not be lower than INR 74,000/t.
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