Indian ferro chrome prices registered a significant hike of around INR 2,000/tonne (t) on improved domestic buying. Despite weak demand from China, Indian producers raised prices on increased demand from the domestic stainless and special steel units.
Notably, China consumes around 30% of the India’s total ferro chrome production. With Chinese buyers retreating, Indian traders had turned gloomy.
Current prices of ferro chrome are assessed at INR 112,000-112,500/t with some bulk orders even concluded at slightly lower levels.
Highlights –
Domestic demand improves
As prices were falling since past few weeks, Indian buyers adopted ‘wait and watch’ mode, expecting for a further correction. As a result, they went low on inventories which led to increased demand in the domestic market.
Some of the Indian producers have hiked their offers on higher domestic demand.
Chinese demand wanes on production cuts at stainless steel plants
Chinese stainless-steel mills are cuting output, resulting in weak ferro chrome demand in the domestic market. The Chinese spot prices are continuously falling which waned off import demand.
South African chrome ore prices increase
Prices of South African UG2 chrome concentrate, which accounts for the maximum share of China imports, have increased since the past week after the Omicron cases surfaced there (in South Africa). Meanwhile, rising power tariffs are expected to take a toll on ferro chrome smelters as production costs may rise further by Apr’22. This is putting further pressure on Chinese mills.
Outlook
Indian domestic ferro chrome prices are expected to remain stable in the coming weeks. On the other hand, the Chinese market is likely to remain bearish ahead of the winter Olympics.
Leave a Reply