Indian ferro chrome prices dropped significantly after major Chinese stainless-steel mills declared their ferro chrome purchase prices for Jan’21. Since China is the buyer of the largest chunk of the total ferro chrome production, the price drop in the country significantly impacted the Indian market and most of the major buyers took a backseat, holding back their procurement plans.
Indian ferro chrome prices took a deep plunge of INR 11,200/t w-o-w to INR 99,200/t ex-Jajpur. Meanwhile, some producers are also offering at even lower levels. Chinese demand is waning as buyers expect a further fall in prices in the coming months.
Market highlights:
- Tsingshan slashes prices for Jan’21
Tsingshan, a leading stainless steel producer in China, reduced its ferro chrome tender prices by RMB 1,400/t ($220/t) m-o-m to RMB 8,195/t ($1,286/t) for Jan’22. Most of the market participants were expecting a fall, but the extent of it has taken Chinese and Indian markets both by surprise.
Meanwhile, other major buyers from China are yet to declare their prices. This has put buyers in the Indian market in a wait-and-watch mode.
- Major Indian ferro chrome seller lowers price
The largest Indian ferro chrome seller in the domestic spot market reduced prices of its ferro chrome post-the Chinese tender release. This intensified the selling pressure on the smaller players who became aggressive in reducing offers. The lowest bid in Jajpur is at INR 95,000/t exw.
Outlook
Market participants feel that due to lower production of stainless steel in China, prices of ferro chrome are expected to hit further lows in the coming months. Considering that China is the largest market for Indian ferro chrome, prices are expected to remain bearish.
Leave a Reply