Indian ferro chrome prices fell by INR 500/t in this week due to intense selling pressure on the domestic producers. The demand from China has dried up which resulted in the allocation of more quantity in the domestic market. Since India is a net exporter of ferro chrome, and almost 50% of the production is exported, this situation of near to absent export demand is taking a toll on the Indian chrome alloys producers. The prices are gradually coming down every week and are expected to fall further.
The domestic stainless-steel market has opened but the demand is yet to pick up. In addition to this, many alloys producers might face serious ore shortage as OMC hasn’t conducted ore auctions the past month, and also hasn’t notified for July auctions yet. However, the producers are still pessimistic and they feel that even the above-mentioned circumstances are not enough to pull the prices up, as excess supply of ferro chrome will overrule all the other conditions. The domestic prices in China are decreasing due to which, the demand is expected to remain absent for a while.
Current Assessments
Few producers in Jajpur were able to conclude a few deals at INR 62,000/t while, few deals were finalized at INR 61,000/t Ex-Jajpur.
The prices for Ferro Chrome assessed by SteelMint are as follows:
- Ex-Jajpur: INR 63,000-64,000/t,
- CNF China: cents 67/lb,
- CNF Japan: cents 70/lb, and
- CNF South Korea: cents 69/lb
Outlook:
Scarcity of raw materials may support prices though slow demand will continue to pressure prices. The market is depressed and the prices are expected to fall further.
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