India: Ferro Chrome Prices Continues to Dip to Lower Levels

Indian Ferro Chrome Market is going through a rough phase. Many producers are now freezing their stocks to prevent themselves from further losses. However, many deals are happening at much lower levels. A producer source claimed that there is very limited demand and the buyers are getting aggressive, and now it all depends upon the negotiation levels of both the parties. Ferro Chrome prices have again reduced abruptly and market sources reported that there is no demand from the global market.

Oversupply of material is one of the major causes for such reduction in prices along with the weak stainless-steel market. If the production levels are not reduced there is a negligible chance that the prices will rebound anytime soon. Producers were already selling at below their production cost and Buyers are asking the material at a much lower price. Domestic price for Ferro Chrome in India is assessed in the range of INR 62,000 - 62,500/MT Ex-Jajpur. Export prices are also sinking, CNF South Korea (10-50mm, HC 60%) is 72cents/lb, CNF Japan (10-50mm, HC 60%) is at 73 cents/lb and for CNF China the prices are at 69 cents/lb.

Market participants are now waiting for the Indian OMC Chrome Ore auctions which is to be held on 15 Jul'19. However, the market seems to be pessimistic about any rise in prices and are expecting the prices to not fall further.