In April due to the slowdown of the Chinese economy and fluctuations between the supply and demand in the Stainless Steel market, Indian Ferro Chrome exports were limited. However in May the Indian Ferro Chrome industry continued on a slow recovery trend, Korea has been the largest importer of Indian origin Ferro Chrome in May at 20,255 MT (April – 17,332 MT), followed by Japan at 7,144 MT (April – 2,968 MT), and China at 6,703 MT (April – 7,839 MT). The Indian producers were keen to close deals amid slow demand, resulting in prices to drop. Aided by the recent depreciation of the Indian Rupee against the Dollar also caused the prices to fall. However, many more buyers have emerged in the market in the past fortnight, as prices in their domestic markets have rebounded, prompting inquiries to India. Average price for Indian origin HC Ferro Chrome has fallen by approximately 5 cents/lb in May, as compared to average CIF price in the month of April.
SteelMint assessed that struck by HC Ferro Chrome exports at low prices and increasing production costs, Ferro Chrome smelters were at risk of losing money, and could succumb to market pressure by having to suspend production unless the Stainless Steel industry in the potential export markets gather steam. Industry observers are expecting Ferro Chrome production in South Africa to restart this month.
Leave a Reply