India: Ferro chrome prices drop post-Chinese tender release

Indian ferro chrome prices dropped by INR 1,300/t w-o-w. Sentiments dampened after the Chinese stainless-steel mills' tenders declared lower purchase prices for July 2022.

According to SteelMint's assessment on 30 June, producers offered at INR 106,700/t exw-Jajpur. Meanwhile, some producers also offered at prices even lower.

Market highlights:

• Tsingshan slashes prices for July: Tsingshan, a leading stainless-steel producer in China, reduced its ferro chrome tender prices by RMB 650/t ($97/t) m-o-m to RMB 8,995/t ($1,345/t) for July 2022. Meanwhile, other major buyers from China are yet to declare their prices. Thus, Chinese demand is waning as buyers expect a further fall in prices in the coming months.
  
  
• Buyers recede: Since China is the largest buyer of India's total ferro chrome production, the price drop in the country impacted the Indian market with most of the major buyers taking a backseat, holding back their procurement plans. This also impacted ferro chrome prices.
  
  
• Oversupply in market: Some plants in India that had shifted production to manganese alloys have again switched back to ferro chrome in a bearish market and amid muted demand for manganese alloys. This intensified the oversupply in the material. So, Indian sellers again had to lower their prices.
  
  

China market overview
China's ferro chrome prices were down by RMB 100/t w-o-w at RMB 9,550/t ($1,425/t) exw-Inner Mongolia. The ferro chrome market remained muted this week, with limited inquiries and modest trading volumes. In addition, both supply and demand were at standstill. In the short term, the ferro chrome market is expected to remain weak until demand goes up.

Outlook:
There are expectations of stable market conditions in the coming week with Indian suppliers hopeful of a resurgence in demand from China, as Covid restrictions have been lifted in that country.