Indian Ferro Chrome Producers Continue to Raise Prices amid Absence of Selling Pressure

The sharp climb in ferro chrome prices continued and sentiment remained bullish amid a scarcity of supply.

SteelMint weekly assessment for grade 60% is in the range of INR 80,000-84,000/MT (Ex-Odisha). However, few producers were also heard to be quoting at much higher prices for small quantities, as material remained in tight supply. Demand from the domestic market is subdued due to high prices and the higher offers are not finding acceptance any more. Though there has been no notable rise in demand for Indian Ferro Chrome from China, scarcity of material is the reason for price surge in the market.
Indian Stainless Scrap Imports Rise Significantly as Ferro Chrome Prices Rise

Stainless Steel (SS) scrap imports to India rise sharply in September 2016 owing to consistently increasing ferro chrome prices (main ingredient used in stainless steel).

According to data maintained by SteelMint, it was observed that SS scrap imports increased by over 45% in September to 99,200 MT against 67,485 MT in August 2016.

Total SS scrap imports during first six months of FY17 (Arp-Sep’16) are recorded at 423,600 MT, where as imports in FY16 were recorded at around 750,000 MT.
Export Market

Spot prices of imported High Carbon Ferro Chrome into China were steady this week. Indian-origin High Carbon Ferro Chrome (58-60% Cr) was assessed at 90 cents/lb CIF China. Spot price of 60%-grade high-carbon ferro chrome imported into Japan stood at 91 cents/lb CIF Japan, as Japanese buyers have strongly resisted any further hike in prices, and are not willing to pay more than China.

Most Indian producers hold an optimistic attitude towards the future market for Ferro Chrome in China as continuously rising prices for chrome ore have increased production costs in China, and some even anticipate that November purchase price for HC Ferro Chrome will rise substantially.

However, China’s leading Stainless steelmaker Tsingshan has decided to cut Stainless Steel output by 200,000 MT in Nov’16, due to the irrational rise in prices of the alloy. The Board of Directors will decide on the output figure for December, depending on the prices of the Alloy at that time.