Indian producers have raised their offers in the domestic market owing to the Rupee depreciating to an all-time low and reduced selling pressure on the back of limited inventory with the producers.
Considering limited demand for the alloy and free-falling prices, the Indian producers have lowered their production volume by about 30%.
“The limited production has eased the selling pressure on the producers”, said a source referring to the diminishing inventory with the sellers.
Another source commented that the rise in domestic offers could be attributed to the depreciation of INR against the USD. “We have also kept the domestic offers at par with the export offers,” he added justifying the rise in Ferro Chrome prices in the domestic market.
Limited Ferro Chrome Production in India Can also be attributed to the Chrome Ore production, which also witnessed a fall of 30% M-o-M in July ‘18 due to mining activities getting hampered in the rainy season.
Some of the market participants are of the view that producers are simply testing the market with higher offers.
SteelMint assessed Ferro Chrome price at INR 73,000/MT (Ex-Odisha), while some offers are also to heard to be in excess of INR 76,000/MT. However, no deals at such high prices could be confirmed from buyer sources.
The overseas market remains numb with low inquiries as there are ample production and supply of Ferro Chrome in China. Chrome Ore at Chinese ports is over 3.65 MnT.
Moreover, a depreciated Yuan vis-à-vis the USD has also discouraged the Chinese buyers from importing.
Export prices are assessed at 75 cents/lb CIF China, 79 cents/lb CIF Korea and 80 cents/lb CIF Japan.
Market participants are closely observing the resilience of the Ferro Chrome prices as India exports 50% of its production and Ferro Chrome prices are likely to come down again as inventory levels rise.
Leave a Reply