The Ferro Chrome prices come under rigorous pressure as bearish sentiment prevails and selling pressure grows owing to evaporating demand.
Sluggish stainless-steel market in China has pushed the Ferro Chrome prices near to the bottom. “There is no demand coming in from China as they have sufficient supply in China and that too at much lower levels than what we can offer at,” quoted an Indian producer.
Considering the soft demand of Ferro Chrome in the market, the Chinese stainless-steel majors also reduced their purchase prices by around 800 Yuan to 7000 Yuan for August.
The spot price of Ferro Chrome is observed to be in line with the tender price set by the major steel firm, however, few sources claim that prices in the Chinese domestic market are at 6,900 Yuan.
The South African UG2 Chrome Ore prices also dipped to USD 170/MT as demand from China has reduced substantially owing to piled up Chrome ore at Chinese ports coupled with depreciated Yuan vis-à-vis the USD, restricting demand for further imports.
SteelMint assessed Indian Ferro Chrome offers at 80 cents/lb CIF China while deals are yet to be concluded at the above-mentioned price. In line with the Chinese prices, Japan, and South Korean market also witnessed a similar decline in prices to 85 cents/lb and 84 cents/lb respectively.
A downtrend in Ferro Chrome prices has also been observed in the domestic market where prices slid to INR 70,000/MT (Ex-Odisha). However, buyer sources were heard quoting deals done at INR 68,000-69,000/MT.
“We are unable to reduce our prices further as our cost of production is close to the current market price,” said a producer source referring to the current market trend.
On the future outlook, prices are expected to maintain stability as Ferro Chrome producers with no captive ore are reluctant to reduce their offers further without recording a minimum margin.
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