Indian Ferro Chrome prices remain unchanged for duration of the month. Indian producers had raised offers in the first week of February in line with the increased Chrome Ore prices released by OMC.
Producers in India are offering Ferro Chrome in the domestic market at INR 72000/MT. Export Prices for CNF South Korea and CNF Japan were down to 81 cents /lb and 82 cents/lb respectively. However, offer prices for China were unaltered at 78 cents/lb CNF China.
Demand in the domestic market remains moderate as the Indian Stainless Steel Market is going through a sluggish phase. Demand from overseas markets are also at a lower level. Buyers are demanding Ferro Chrome at much lower prices than that being offered at and negotiating aggressively. As most of the producers had to bare high Chrome Ore procurement costs, they are restraining themselves from lowering the prices despite available demand at lower prices.
Chinese Ferro Chrome Market
China’s leading stainless steel mills, Taiyuan Iron & Steel (Tisco), Tsingshan Group and Baosteel have released their March tender prices for HC Ferro Chrome. Tsingsan and Baosteel increased their prices by 100 yuan/MT (USD 14.90/MT) whereas, Tisco kept their prices unchanged. With the increased production levels of HC Ferro Chrome in China, the country is on the verge of being self sufficient and rely less on imports.
On the future outlook, it may be deduced that the Export market of HC Ferro Chrome may suffer for India as the largest importer emphasizes more on the home production of Ferro Chrome. 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.
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