Indian ferro chrome prices plunged INR 2,300/t exw w-o-w amid bearish market sentiment, as most buyers were waiting out in expectation of a further fall in prices.
According to SteelMint’s assessment on 28 July, producers were offering at around INR 100,000-101,000/t exw-Jajpur.
Market highlights:
Chinese traders were waiting for the ferro chrome tender price announcements for August from the major stainless-steel mills, which are expected in the coming weeks. As a result, Indian ferro chrome prices have been solely driven by domestic demand. Thus, ferro chrome prices are on the decline due to a lack of demand from Chinese steel mills.
Indian buyers were also delaying their purchases due to further price drops. A Chinese mill is expected to open at around RMB 8,400/t (USD 1,245/t), equivalent to 97-98 US cents CIF Chinese main port.
However, minor improvement in stainless steel prices due to the hike in nickel prices on LME prevented ferro chrome producers from reducing their offers. On 26 July, stainless steel (304 grade, HRC) prices were assessed at INR 251,000/t ex-Mumbai, marginally higher w-o-w by INR 2,000/t.
China market overview:
Ferro chrome prices in China remained stable at RMB 8,850/t (USD 1,312/t) ex-Inner Mongolia due to the wait-and-watch policy adopted by buyers. In addition, raw material prices for ferro chrome have declined due to low demand, and cost support for ferro chrome has weakened. In addition, the market conditions were generally weak due to the weak trends in stainless steel futures and increased pessimism, sources informed.
Outlook
Indian ferro chrome prices are expected to fall further and plant shutdowns can’t also be ruled out amidst the lackluster stainless-steel market. However, a sharp fall is unlikely as ferro chrome prices are already trending close to cost of production.
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