Indian Ferro Chrome Prices Rise on Tighter Supply

Spot prices of high-carbon ferro chrome rose across Asia this week.

SteelMint assessed 48-52% charge chrome at 59-61 cents/lb CIF China, up from 57-58 cents/lb CIF a week ago, and offers for 58-60% Indian high-carbon ferro chrome was heard at 57-58 cents/lb CIF China, up from 56 cents/lb CIF.

Offers to Japan for minimum 60% Cr material was assessed at 65-66 cents/lb CIF Japan, up from 62-64 cents/lb CIF last week. However, there was no trade into China and Japan from India reported this week.

China’s Baosteel released its April ferro chrome purchase price, which has been raised by RMB 100/MT from March to RMB 4,780/MT ex-plant, which was equivalent to 55 cents/lb.

Domestic Indian prices are 64-65 cents/lb ex-plant and inquiries were thin in Asia.

One Indian producer said he would offer to Japan minimum 60% material at 66 cents/lb CIF Japan, after a sale into South Korea at 65 cents/lb CIF South Korea. The freight cost to Japan is roughly 1 cent/lb higher compared to South Korea.

Supply Tightness supports Ferro Chrome Prices

Ferro chrome domestic prices remained stable, although there was tight availability of material this week.

SteelMint assessed ferro chrome 60% prices at INR 57,000-57,500/MT (Ex-Jajpur).

Market sources reported that most ferro chrome producers are booked with orders till May and they do not have material to offer in the open market. Prices are likely to remain at this level for this month.

Indian Export of Ferro Chrome have gone up by over 13% to approximately 465,812 MT in FY16

In FY15 India exported 411,030 MT of ferro chrome. However, in FY16 Indian export of ferro chrome was recorded at 465,812. This trend is likely to continue in FY17. Production levels of Ferro Chrome in India also increased with more Tata Steel and OMC chrome ore being available. India produces around 1 MnT of Ferro Chrome anually, and half of it is exported. FY16 witnessed increased production and excess supply, resulting in prices tanking.

Quantity in MT
Source: Custom
Exchange Rate: USD 1 = INR 66.6