India: Ferro Chrome Prices Rise on Shortage of Chrome Ore

Indian Ferro Chrome Prices increased W-o-W despite sluggish Stainless Steel market conditions amid Ore availability uncertainties. Many Ferro Chrome producers are going for production cuts to keep the production ongoing till the next month as the inventory is low and ore availability is major concern in India. Due to Transporters strike in Jajpur area over GPS enabled trucks, ore supplies are suspended for two weeks now. A Jajpur based producer shared that with VISA Steel shutting down all of its Ferro Chrome units, and rest of the producers going for production cuts, the supply situation is tightened. Although the demand is still the same and the Stainless Steel market still is dull, the Ore availability, transportation situation, recent increase in Nickel Prices have all contributed to support the increase in current prices of Ferro Chrome, he added.

After Indonesia declared that Nickel exports would be banned from Jan 2020, Nickel Prices surged up, which in line gave some support to the continuously falling Stainless Steel Prices. Meanwhile, Ferro Chrome Prices have also gone up. Currently, domestic prices for Ferro Chrome in India is assessed at around INR 66,000/MT. Although producers were also heard to be quoting at higher prices at around INR 67,000/MT. Offers for CNF South Korea (10-50 mm, HC 60%) is at around 73 cents/lb, CNF Japan(10-50 mm, HC 60%) is at 74cents/lb and for CNF China the prices are at around 71 cents/lb.

On the future outlook, the prices may increase for now amid supply shortage. Producers are also waiting for the next round of Ferro Chrome tender prices from China to get further clarity.