Indian ferro chrome prices are stable since last week with limited transactions in the domestic market. The buyers are negotiating for lower prices as the prices of chrome ore has reduced but the producers are firm on not reducing domestic prices below the realization from China export prices.
The domestic market remained dull but the producers are optimistic as the inquiries from the export market has picked up and some deals were concluded at higher levels too. There is an expectation among market participants that domestic prices will also increase in the upcoming weeks.
In China, the production volume is lowered due to the increased electricity tariffs in the winter season and surging met coke prices. In addition to this, the pre-stocking for the Chinese New Year is expected to start soon, and the appreciating Chinese Yuan will also boost the import outlook of the Chinese buyers. Thus, we expect a bounce-back in the Indian ferro chrome prices in the coming weeks.
Current assessments are at INR 66,000/t ex-Odisha and export prices are at 69 cents/lb CNF China, 72 cents/lb CNF South Korea and 73 cents/lb CNF Japan.
Outlook:
Indian ferro chrome prices are expected to increase in the near-term on expected pick-up in overseas demand and rising stainless steel prices.
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