Indian High Carbon Ferro Chrome Price Under Pressure on Low Trading

Indian producers of Ferro Chrome cut offers to solicit trade as Chinese buyers looked for lower offers

Although domestic offer price for High Carbon Ferro Chrome is relatively unchanged from last week, there is severe destocking pressure, with demand from overseas market disappearing towards the end of the year. The mainstream price of HC Ferro Chrome 60% min. is ranging from INR 58,000 – 58,500 /MT (Ex-Works Odisha).

India is a significant player with almost a tenth of the global Ferro Chrome output and produces about 1 MnT per annum. Half of this production was being exported to China, Japan and Korea – the Stainless Steel production hub of the world. However, with a slowdown in Chinese consumption and increased domestic production, the Indian Ferro Chrome producers have been under fierce pressure and have had to constantly cut their offers aggressively to garner buying interest.

From Jan-Nov’15 India has exported Ferro Chrome at an average of over 39,000 MT per month, according to Custom Data. However, in the current month (till 20 Dec’15) Indian Ferro Chrome exports stand at 20,000 MT. Demand has failed to match the supply, but production has not come down under the circumstances. Hence, domestic prices could also come under pressure as some producers could offer aggressively to clear their stock.

Ferro Chrome export prices stayed flat week on week as trading activities thinned amid the year-end lull.

SteelMint assessed 60% Indian origin high-carbon Ferro Chrome at 64-65 cents/lb CIF China. Producers and a trader said there were no inquiries from China this week as January-loading cargoes booked this week will arrive in early February when Chinese companies are closed for Lunar New Year holidays.

Indian origin Ferro Chrome offer prices for 60%-grade was assessed at 68-69 cents/lb CIF Japan. No trades or bids could be confirmed.

India’s Ferro Chrome Export in 2015

Source: Custom Data