Indian Ferro Chrome Poducers Forced To Cut Domestic Offers

Indian producers of Ferro Chrome have been forced to cut their domestic offer prices after export prices took a further hit.

Export offers for India-origin high carbon ferro chrome was pegged back after the European benchmark ferro chrome price was settled at 82 cents/lb for Q2 of 2016, down by 10 cents/lb from the previous Quarter. The spot price of Indian origin high carbon ferro chrome (60% grade) was at 55 cents/lb CIF China, but Chinese customers were seeking material at much lower levels. Although, spot prices have not moved much in China, Japan and South Korea, trade remained thin in the week gone by, as sell-side participants sought clearer direction.
Price direction will likely come from Chinese stainless steelmakers setting domestic purchase prices for April, set to be announced later this month. Japan’s spot import price was assessed at 62-64 cents/lb CIF Japan, unchanged from last week.

SteelMint learned from market sources that buyers sense prices may not have bottomed out, so they are not seeking more volumes, and they are not booking anything yet because they are sure that prices are really going down.

Domestic Ferro Chrome Prices Down

The domestic ferro chrome market has trended down on prices achievable in the export market and as a result having more material to sell in the domestic market, as selling pressure grows on ferro chrome producers.

SteelMint assessed ferro chrome price levels reduced and being offered in the range of INR 55,500-56,000/MT (Ex-Odisha).

SteelMint learned that most market participants hold a pessimistic outlook towards the future market trend.