Indian ferro chrome prices reduced this week on limited buying interest from the Chinese mills. After a major Chinese stainless-steel mill, Tsingshan, rolled over its ferro chrome tender prices for October from last month, the Indian market became bearish. The domestic buyers followed the Chinese tender prices and started bidding for lower prices.
A few sellers are said to have concluded smaller quantities in the domestic market at lower prices to offload inventory, which further weakened sentiments.
Meanwhile, the chrome ore market also remained dull as only limited volumes were booked at the auctions.
SteelMint assessed the prices of ferro chrome at around INR 124,600/t ex-Jajpur, while some deals were heard to be concluded at lower prices as well. Currently, the buyers are insisting on INR 115,000-120,000/t levels. However, most sellers remain reluctant on selling at such low prices and have withdrawn offers.
Factors behind weakening chromium market
- Ferro chrome prices have been dropping on exports to China. With China showing limited buying interest thanks to its reduced production of steel, producers speculate that prices may drop further.
- Major stainless-steel mills kept their prices flat for the month for the long-term contracts. The spot market is also flat despite supply crunch of ferro chrome in the spot market in China.
- Power curtailments have been eased in some parts in China. Thus, most buyers in the Chinese market are buying limited quantities on immediate delivery basis at RMB 10,800/t ($1691/t).
- Indian ferro chrome buyers have enough inventory for the month and are waiting for prices to come down.
Outlook
Most of the market participants expect prices to come down further on lower buying interest from domestic and exports markets. However, many smaller ferro chrome smelters might shift towards manganese alloys, creating a little shortage in the domestic market which may help to turn it around.
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