Indian ferro chrome prices remained rangebound w-o-w, as per SteelMint assessment. Producers attempted to raise prices in response to improved domestic and Chinese demand, but buyers were unwilling to accept higher prices.
According to SteelMint’s assessment on 3 November, producers were offering at around INR 105,000-106,000/t exw Jajpur. However, some producers offered at higher levels, although deals are yet to be concluded.
Market Highlights:
- Domestic prices stable: Despite moderate domestic demand, Indian ferro chrome prices remained stable. The majority of Indian ferro chrome buyers were awaiting the release of ferro chrome procurement tenders from the Chinese stainless-steel mills. This discouraged buyers from booking material at higher prices. As a result of less bargaining, prices were rangebound.
- Healthy export demand: Following the announcement of the purchase tender price by a major Chinese stainless-steel giant at higher levels of around RMB 800/t m-o-m, Indian producers received many enquiries from the export market. Exporters were offering around cents 99/lb, but SteelMint recorded around 7,500 t in the export market, primarily for China and Taiwan, at cents 96-97/lb on CIF basis. This kept prices rangebound and prevented a further increase.
Outlook
The majority of Indian ferro chrome buyers were awaiting the release of ferro chrome procurement tenders from Chinese stainless-steel mills. During this time, the suppliers’ inventory depleted as they continued to postpone purchases in the hope of lower prices. Furthermore, as their monthly buying schedule has approached, some buyers are expected to begin purchasing. So, good enquiries are expected. But non-acceptance of higher prices during last week may keep prices stable in the short term.
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