India: Ferro chrome prices down on low demand

Indian ferro chrome price has decreased by INR 1,500/t W-o-W owing to low demand and near to absent trades in the domestic market. India produces a surplus amount of ferro chrome and is to a large extent dependent on export sales, however, in the present scenario, the inquiries are absent from the biggest consumer, China. This is forcing the producers to allocate a higher quantum in the domestic market, but the stainless steel market is yet to pick up steam, as most of the production units are either temporarily shut or operating at a significantly reduced capacity. Thus, there is an added pressure on the sellers to clear inventory.

Producers in Odisha are quoting at INR 62,000/t ex-Jajpur, but the buyers are insisting on INR 60,000/t levels. However, the producers are not willing as yet to further lower their offers. Not many deals have been recorded in the domestic market.

OMC didn't auction chrome ore in the past month and the producers are worried about the ore supplies, however, this shortage might not provide any support to the ferro chrome prices due to the existing surplus supply in the market.

Outlook
Ferro chrome producers in India are under tremendous selling pressure and the situation will not improve until the stainless steel market and export demand pick up again.