Indian Ferro Chrome Export Offers Rise

High Carbon (HC) Ferro Chrome producers in India have raised spot offers, although higher price levels have not yet attracted sufficient buying interest.

SteelMint assessed the spot price of 60% grade Indian HC Ferro chrome at 65-66 cents/lb CIF China, up from 61-62 cents/lb CIF China last week. Stainless Steel mills in China are running short on inventory, as very few were willing to supply to them at the very low purchase price set. This created a shortfall in the required inventory, and major Stainless Steel mills are now in a desperate need to buy Ferro chrome from the spot market. Taking stock of the situation in China, Indian producers have raised their offers, which is also finding acceptance.

The Japanese spot import price for minimum 60% Cr material rose to 68-69 cents/lb CIF Japan, from 66-67 cents/lb CIF Japan a week ago. However, most Indian producers are not willing to sell below 70 cents/lb CIF Japan.

India Ferro Chrome Export in April’16

Qty in MT
Source: SteelMint Research
Exchange Rate: USD 1 = INR 66.5

Domestic Ferro Chrome Prices Stable on Limited Supply

Ferro Chrome prices remain unchanged in the domestic market W-o-W on steady demand from end-users.

In the Indian market, HC Ferro Chrome prices remain unchanged as demand remained firm with limited supply in the open market. SteelMint assessed currently, 60% grade is being traded at around INR 58,000-58,500/MT (ex-works Odisha).

Future Outlook

Market sources reckoned Ferro Chrome prices could continue rising in the near-term, with demand from China for Indian origin Ferro Chrome expected to be firm. China is the biggest buyer of Ferro chrome in the world, and also the largest Stainless Steel and Ferro Chrome producer in the world. India produces around 1 MnT of Ferro Chrome every year, out of which exports around 0.5 MnT, and traditionally China represented around half of India’s total Ferro Chrome exports. However, China’s dependence for Ferro Chrome Imports has reduced, driven by ramp up of domestic production. In its drive to reduce dependence on imported alloys, China’s imports of chrome ore will zoom. Also, with no export duty on Indian Chrome Ore exports, China could be an attractive destination for merchant chrome ore miners in India.

Ferro Chrome Export from India to China

Source: DGFT