There is a stalemate situation arising in ferrochrome prices in India. Buyers are awaiting Chinese market to reopen post-holidays. Indian ferrochrome producers are affirmative that once the Chinese market reopens, the prices will be on a positive side as production curtailment is still intensifying in the China.
In January, the production of HC ferrochrome reduced by around 80,000t in China and Inner Mongolia remained the most affected region. Meanwhile, the dual-energy control, is intensifying in the area and the production cuts will be worse. Thus, the exports will be higher in the coming month for India, which is the third-largest exporter of ferrochrome to China.
Meanwhile, domestic Stainless-steel producers have completed the procurement for the month, and are willing to wait up to next week. In the auction of ferrochrome conducted by Vedanta, ferrochrome prices were at market levels of INR 94,900/t ex-works.
Currently, prices are at INR 95,000/t ex-Jajpur, with a few deals witnessing marginal deviations in both sides. However, in exports, a deal was concluded at cents 102/lb CIF China, but now the demand is missing due to holidays and the prices are averaged out at cents 100/lb CIF China.
Outlook:
Prices of ferrochrome in domestic market is expected to remain around the same levels during the upcoming weeks. However, some marginal shifts can be witnessed depending on the inventory levels with the producers and the urgency for liquidity.
Leave a Reply