Market uncertainty and the plummeting global chrome ore and ferro chrome prices have brought trading activity to a standstill.
Indian Ferro Chrome producers are finding it difficult to conclude deals as buyers’ sentiment turn cautious in sight of the sharp drop in prices. The current offers for HC 60% Ferro Chrome is down at INR 72,000/MT (Ex-Odisha), but buyers are not willing to pay more than INR 70,000/MT.
Abundant availability of Chrome Ore in China and sinking prices of South African Chrome ore has been a topic of concern for Indian Ferro Chrome producers. Low demand from China and insufficient domestic inquiries has kept Ferro Chrome market under pressure. Market participants anticipate lower June tender prices from Chinese mills and are unwilling to enter the spot market in the meantime.
Export offers to China from Indian suppliers of HC Ferro Chrome (58-60% Cr) edged lower to 75 cents/lb CFR China, down from 78 cents/lb in the previous week, in line with the weakened domestic prices in China. There is downward pressure on the Chinese-origin HC Ferro Chrome, due to lower prices of Chrome Ore imported into China, and lack of demand for the alloy.
Trading in other Asian markets was also thin as most market participants waited on the sidelines.
Market expectation is for prices to remain under pressure and further downward price movements is still possible, on the back of slow Ferro Chrome demand worldwide.
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