Indian Ferro Chrome Exports Likely to Remain Low in FY16

Export of Indian Ferro Chrome has gone down by approximately 24% to 425,628 MT in FY15

In FY14 India exported 560,743 MT of Ferro Chrome. However, in FY15 Indian export of Ferro Chrome was recorded at 425,628 MT. This trend is likely to continue in FY16.

The Far-East, which is the epicenter of Stainless steel production in the world and hence the biggest buyers of Ferro Chrome in the world, have reduced their buying from India vastly. China, which had procured 262,876 Mt of Ferro Chrome in FY14, procured only 99,127 MT in FY15 (down by 62%). This was mainly because China’s own production of Ferro Chrome continued to rise and South African Charge Chrome and Chrome Ore was available at much attractive rates due to the depreciated Rand.

In another development, under the new Merchandise Exports from India Scheme (MEIS), announced under Foreign Trade Policy (FTP), 2015-2020 incentive on Ferro Alloys has effectively been reduced by 2% when exported to emerging markets like Japan, Korea, ASEAN countries and reduced by 4% when exported to traditional markets like European Union, US and Canada. This came as a major setback to the Ferro Chrome exporters as they now have to adjust their prices higher and that further erodes their competitiveness.