India: Ferro Chrome Exports Rises by 46% in CY17

As per Indian customs, the country witnessed an increase of 46% Y-o-Y in its Ferro Chrome exports in CY17.

India exported 0.82 MnT in CY17 while the same stood at 0.52 MnT in CY16.

China was the largest importer of Indian Ferro Chrome as it imported 0.30 MnT in CY17 against 0.17 MnT in CY16, witnessing an increase of 77% Y-o-Y. South Korea and Taiwan, on the other hand, recorded an increase of 25% and 2% on yearly basis in their Ferro Chrome imports from India followed by others. China, South Korea, Japan and Taiwan are the epicenter of Stainless Steel production in the world, and hence, the most of the demand for Indian Ferro Chrome comes from these countries.

India produces over 1 MnT of Ferro Chrome annually and half of it is exported.

Ferro Chrome Prices in CY17

Indian Ferro Chrome prices started strong at the beginning of CY17 as the production of the commodity in China was low and Indian producers witnessed healthy demand.

However, during the second quarter of CY17, the Ferro Chrome prices almost tanked. Export offers to China from Indian suppliers of HC Ferro Chrome (60% Cr) eased, and Chinese buyers retreated to the sidelines, amidst a very weak stainless steel market in China - which kept stainless steel prices under pressure, while also squeezing prices of Ferro chrome.

In June, two major Stainless Steel mills in China decided against declaring Ferro Chrome tender price, citing sufficient inventory of Ferro Chrome. Most Stainless Steel mills cut down on their production levels drastically in June, after going on maintenance in May. Moreover, quite a few Stainless Steel producers in China shifted a significant part of their production capacity to produce Crude Steel, further lowering Ferro Chrome demand from China.

However, stainless steel market gained in strength from mid-July and demand for Ferro Chrome bounced back and higher Ferro Chrome and Chrome Ore offers started finding acceptance. Moreover, an appreciation of INR and the South African Rand against USD lent support to Ferro Chrome and Chrome Ore prices. September saw Indian Ferro Chrome producers raising their offers to China in line with a rally in stainless steel prices in China and higher Chrome Ore prices. However, in the last quarter of CY17, Ferro Chrome prices started retreating in October and November, before eventually ending the year on a stable note in December.