Indian ferro chrome prices fell significantly by INR 3,750/tonne (t) w-o-w owing to limited demand from the domestic and global markets. Meanwhile, the continuous drop in the Chinese ferro chrome prices is a concern for ferro chrome smelters.
The current price assessment of ferro chrome is at INR 117,950/t ex-Jajpur, India. Export offers dropped to cents 123/lb CNF China. Prices in China are at RMB 10,150/t ex-Inner Mongolia (HC 60%) and RMB 10,000/t ex-Guizhou (HC 55%).
Most of the major traders and smelters reported to SteelMint that spot demand from China is dry and bids are substantially lower than current domestic prices of INR 117,950/t. Spot market prices in China also fell by RMB 300/t w-o-w and by RMB 700/t after tender prices were released by Bao Steel.
China’s ferro chrome production recovers
Ferro chrome supply has improved in almost all the Chinese provinces since last month, and there is ample amount of material available in the spot market. Thus, steel mills are reluctant to import ferro chrome at prices similar to spot levels of RMB 10,150/t ex-Inner Mongolia.
There is still some lack of clarity regarding the energy curbs and how these would be followed up in the coming month. Major steel mills remain affirmative that prices will be controlled and may not inflate as much as earlier.
Outlook
Indian ferro chrome prices are expected to fall on lower buying interest from China. Meanwhile, lower prices of chrome ore might put further pressure on the Indian sellers for further negotiations.
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