Indian Ferro Chrome market has come under pressure given limited buying appetite for Ferro Chrome in China and the underlying weakness in the stainless steel market.
Market sentiment in India remained bearish, with most agreeing that there could a further dip in prices in the near-term. “Market is dull as participants are in a wait-and-watch mode,” said a source referring to the cautious stance taken by the buyers.
A weak stainless-steel market in China has been detrimental for the Ferro Chrome producers as they have been witnessing little or no demand for the commodity from China.
“Domestic players in China are already high on Ferro Chrome inventory and are finding it difficult to realize their commodity,” said a producer source referring to the less dependency of China on the commodity’s imports. April tender prices from major Chinese stainless steel mills are likely to be announced next week and almost everyone in the market accepts that the prices will be lower by Yuan 200-300/MT.
Indian Export offers for Ferro Chrome have slipped to 97-98 cents/lb CIF China, while Chinese buyers are still reflecting a reluctance to accept aforementioned offers and are showing acceptance at 95 cents/lb levels.
Keeping an eye on the Chinese Ferro Chrome market, Japan and Korea also reflected cautiousness in their purchase, and are waiting patiently for Chinese Ferro Chrome tender prices to be announced before making any move. Offers to Japan and Korea remained stable at 103 cents/lb and 102 cents/lb CIF respectively.
Considering the high Chrome Ore inventory at Chinese ports and negative views in the Ferro Chrome market, UG2 Chrome Ore prices could also come under pressure. There are talks of negotiations between the Chinese importers and South African sellers to bring down prices to around USD 225/MT CIF China May deliveries.
The mainstream price of HC Ferro Chrome 60% min. is ranging from INR 83,000 – 84,000 /MT (Ex-Works Odisha).
SteelMint learned that the manufacturers of Ferro Chrome are weighed down by deteriorating external demand and destocking pressures, with most seeing little chance of an upswing in prices. Whereas, some agreed that there could a further dip in prices in the near-term.
On the future outlook, most market participants hold a pessimistic outlook towards the future market trend as Ferro Chrome prices are expected to slip downwards in line with major Chinese stainless steel mills reducing their tender price for April.
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