Most of the Indian ferro chrome producers are out of chrome ore supply, as OMC has not conducted its monthly auctions since May-20. OMC and TATA Steel, both of the major miners are either producing at much lower capacity or not producing chrome ore and can only fulfil the previous orders. On top of that, the stainless steel demand is strong, thus higher prices of stainless steel and scarcity of chrome ore are pulling up the prices of ferro chrome.
Current Assessments:
Ferro Chrome prices went up by INR 500/t due to a pickup in demand along with limited production of the alloy due to chrome ore shortage. SteelMint assessed ferro chrome prices at around INR 62,000-63,000/t from Jajpur producers and further INR 1,000/t higher from the Durgapur producers. However, few deals were concluded at higher prices for bulk orders, due to scarcity of ferro chrome in the domestic market.
Meanwhile, the export market remained dull with no new inquiries, as Chinese domestic production has increased. Lower power tariff, during the rainy season in China, is supporting domestic demand. The current assessments are as under:
Ex-Odisha: INR 62,000-63,000/t,
CNF China: cents 65/lb,
CNF Japan: cents 68/lb, and
CNF South Korea: cents 67/lb.
Outlook:
The prices of ferro chrome can boost up further due to favourable supply-demand dynamics.
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