Due to limited transactions, Indian Producers have cut their quotations in this week to boost sales. However, even with lowered prices, producers are unable to entice buyers. A Durgapur based producer expressed his concern, that with falling Alloy prices and the increasing Ore prices, the production is not viable but they need to carry on as shutting down is not an option. Chrome Ore prices in the domestic market are continuously increasing but the demand for the alloys remains tepid in the domestic and the export market as well. Stainless Steel Mills have sufficient inventories and therefore, are pushing down the prices aggressively. Simultaneously, the producers are more concentrated towards the domestic market and this has made the competition in the market very tight. Producers are willing to lower their offers to conclude deals. Meanwhile, Nickel prices are coming down, the prices came down by 1.5 percent on November 11 after a 3.5 percent fall in the last week. This may put an impact on the Stainless Steel market and therefore is bound to affect Ferro Chrome Market.
Currently, the domestic price for Ferro Chrome in India is assessed at around INR 65,000/MT Ex-Jajpur which is lower by INR 2000/MT W-o-W. Offers for CNF South Korea (10-50 mm, HC 60%) is at around 73 cents/lb, CNF Japan (10-50 mm, HC 60%) is at 74 cents/lb and for CNF China the prices are at around 70 cents/lb. Although the prices are at bottom levels in the export market, yet no deals were concluded due to sluggish demand. The export market remains dull with the down-trending stainless steel market.
Producers are mostly into wait and watch mode, while the market continues to look pessimistic. Any rise in the prices is possible only if severe production cuts are experienced in China. Due to the oversupply of Ferro Chrome in the domestic market and weak buying interest from the Finished market, the prices remain at bottom levels and under continuous pressure.
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