Indian Ferro Chrome prices plunge on weak steel fundamentals.
Owing to the low realization of stainless steel, producers have cut production volumes significantly to hedge against low margins. This, in turn, has impacted inquiries for Ferro Chrome.
“Producers are trying to sell at INR 79,000-80,000/MT (ex-Odisha), while traders have lowered their offers further to INR 78,000/MT,” said a source while pointing to prevailing market trends. The effect of the seasonal slowdown is also marked, he added.
Demand from China has been unable to support domestic prices due to a depreciating Yuan vis-a-vis the USD, coupled with ample supply of the commodity in the region. This further compelled buyers to rely on domestic Ferro Chrome rather than importing from India.
Resumed production of the commodity in China along with a weak stainless steel market has forced prices down to 87-88 cents/lb CIF China. However, Chinese buyers are offering even lower prices.
In line with the Chinese market, prices in South Korea and Japan also edged down to 94 cents/lb and 95 cents/lb respectively.
On the futures front, market participants expect further drift in Ferro Chrome prices while hoping the same to hold at current levels.
Leave a Reply