Indian Ferro Chrome prices have been escalating since the past two weeks despite sluggish demand. SteelMint learned that the demand situation has not changed much, but it’s the supply scenario that is driving the market. Chrome ore prices were increased by significant levels in the last month’s auctions, and most of the producers are low in inventory and are dependent on the overpriced ores for manufacturing. This, however, increases the manufacturing cost by a significant amount. In such a situation, a price rise of INR6,000-7000/MT was estimated but watching the current market scenario such higher-level prices are not being accepted in the market. A few major producers are quoting at INR 71,000/MT but the transactional price remains at around INR 69,000-70000/MT. Although the prices are inflating at higher rates, the producers don’t seem much excited about the prices increase as the profit margin still remains negligible. In approximate figures, Indian consumption of Ferro Chrome is almost half of that of the production, therefore, the domestic market is also governed by the global market sentiments. China being one of the major importing countries of Ferro Chrome from India, the ongoing high-level trade talks have put a high impact on the market.
Currently, domestic prices for Ferro Chrome in India are assessed at around INR 69,000-70,000/MT. However, a few deals were heard to be concluded at INR 68,000/MT from the West Bengal region. Offers for the global market remains unchanged with prices of CNF China at 72 cents/lb.
On the future outlook, the prices may increase for the short term, however, the demand scenario and the ability of buyers negotiation will decide the longevity of the inflated prices.
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