Indian ferro chrome prices remained stable w-o-w amid moderate demand. There was no significant improvement in buying interest.
As per SteelMint’s assessment on 25 August, 2022, most of the producers were offering HC60% grade material at around 95,000/t exw-Jajpur. Some deals, however, were concluded below the prevailing market price to maintain long-term business relations, according to sources.
Market highlights
This week, producers received moderate enquiries. Material was only booked by buyers who had exhausted their stocks and booked even small quantities so that their production could continue. Most buyers, including the overseas buyers, were waiting for Chinese steel mills’ tender price for September delivery. As a result, ferro chrome prices remained stable.
However, due to tight supply, some of the major producers have increased their offers but are yet to find acceptance in the market.
Moreover, stable stainless prices amid moderate demand influenced producers to keep ferro chrome prices flat this week. SteelMint assessed stainless steel (304 grade, HRC) prices at around INR 236,000/t exw Mumbai on 23 August, almost stable w-o-w.
China market overview:
China’s ferro chrome (HC60%) prices remained unchanged at RMB 7,850/t ($ 1,146 /t) exw-Inner Mongolia due to dull demand. The ferro chrome market showed weak trends this week. In the Chinese ferro chrome market, the majority of large enterprises have completed their purchases for the month.
Since chrome ore prices have dropped, small-scale buyers were holding off on purchases as they anticipated a lower price for the coming round of purchase tenders from major stainless steel manufacturers. This might result in a reduction in ferro chrome prices in the months to come.
Outlook
It is expected that stainless steel mills in India will get back to regular production levels with the festive season approaching. India typically sees higher stainless steel demand during the festive season. However, demand from India’s major export destination – China – is still not showing any signs of recovery. Therefore, ferro chrome prices should remain below INR 100,000/t in September.
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