Indian ferro chrome prices are down by INR 500/t w-o-w due to intense selling pressure with producers trying to clear their inventories in this downtrend market, where oversupply has hit the market hard and demand from the export market has dried up too.
The prices are gradually coming down every week and could fall further. The domestic stainless-steel market has started operating but the demand is yet to pick up. Meanwhile, OMC hasn’t conducted chrome ore auctions in the month gone by and also hasn’t notified for July auctions yet. This might create some supply disruptions with the onset of monsoons.
Export sales have dried up too before the Chinese purchase tender price announcement, which is expected to be released in the coming week. SteelMint learned from market sources that another reason for reduced exports to China can be attributed to the increase in their in-house production.
Current Assessments
The buyers are not willing to procure above INR 60,000/t. However, only a handful of deals were heard to be concluded at those levels. Meanwhile, few deals had already been concluded at INR 61,000/t. The prices for ferro chrome assessed by SteelMint are as follows:
- Ex-Jajpur: INR 61,000/t,
- CNF China: cents 66.5/lb,
- CNF Japan: cents 70/lb, and
- CNF South Korea: cents 69/lb
Outlook:
With UG2 prices falling by 12% w-o-w the sentiments for further price decline in the Chinese ferro chrome market have become firmer. Market expectation suggests, major Chinese steel mills will reduce the tender prices by RMB 300-500/t by next week.
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