Indian Producers have increased the prices of Ferro Chrome in the domestic market by INR 3,000/MT on W-o-W basis.
In line with the recent OMC Chrome Ore auction fetching higher Chrome Ore prices, Indian producers have increased the prices for Ferro Chrome. As the prices went up substantially in the auction held on 02 Feb’19, therefore, the cost of production has seen a sharp rise, which has compelled the producers with captive Chrome Ore supply to increase prices.
Producers are offering Ferro Chrome in the domestic Market at INR 72000/MT. However, SteelMint assessed that there are a few trades being concluded at INR 71000/MT.
Demand in the export market remains weak as the major importer markets belong from Far East, where the Chinese Population is significantly high. Therefore, these market participants remain absent due to the Chinese New year festival. Prices for CNF South Korea and CNF Japan remained unaltered at 80 cents /lb and 81 cents/lb respectively. However, offer prices for China went up to 76 cents/lb CNF China.
On the future Outlook, demand can rebound post Spring Festival when the inventories are used up, as most of the major producers had already stocked up their inventories prior to the festivals. Meanwhile, there is limited chance for Ferro Chrome prices to correct anytime soon, as higher Chrome Ore prices will restrict any downward movement in Ferro Chrome prices.
Leave a Reply