Ferro Chrome: Successive weeks of price hikes in India comes to a halt

Indian ferro chrome prices escalated exponentially in the past few weeks. However, as procurement for the month have been fulfilled the prices are relatively unchanged and is not expected to come down.

Key Highlights:
Indian demand is now flattening after the major buyers have procured for the month at higher prices. Few buyer sources revealed that for bulk orders they are being quoted prices as high as INR 75,000/t. This is likely because there are not many producers who can supply in large quantities.

"There was a panic in the market regarding chrome ore shortage, however, as most of the deals are now done so now the market is easing up", shared a Odisha based producer.

Meanwhile, another producer remarked, "Though the market has stabalized this week, but if OMC doesn't auction chrome ore in this month, many producers will have to shut shop. Earlier, the scarcity of chrome ore was mitigated slightly by Misirlall mines, however, they are now sold out and the producers that don't have captive mines are solely dependent on OMC".

In the export market, demand from Chinese buyers remained subdued as the domestic production in China is high. Few market participants also said that the Chinese buyers are skeptical about procuring from India given the geo-political issues between the two countries.

Future Outlook:
An upward movement in ferro chrome prices is expected as fresh inquiries starts coming in for October procurement. The buyers and sellers both expect the market to reach higher levels for bulk amidst the ore shortage and unlikeliness of OMC conducting auctions in September.