India: Ferro Chrome Prices Edge Down amid Weak Demand

Indian Ferro Chrome prices come under pressure on weakening demand from both fronts - domestic as well as overseas.

The stainless steel market in China witnessed a drastic downturn with its supply surpassing the demand which created a pressure on its price.

In view of sinking stainless steel market, the Ferro Chrome prices in China also drifted down. "We were expecting Chinese demand after their holidays but were disappointed," said an Indian producer referring to evaporating demand for the commodity.

SteelMint learned from market sources that domestic Chinese Ferro Chrome producers have started selling aggressively fearing a further drop in its prices owing to weakening Stainless steel market.

Moreover, it has also been heard that some of the stainless steel producers in China have cut their production to hedge against lowering margins while some small local Ferro Chrome producers were forced to shut down their operations.

Indian producers have been offering at 90 cents/lb CIF China but have been met no conclusive inquiries. Similarly, demand from Japan and South Korea were also sluggish as they are currently in a wait-and-watch mode. Export offers for Japan and South Korea are assessed at 95 cents/lb and 94 cents/lb CIF.

In line with the Chinese market, a bearish sentiment has also surrounded the Indian domestic market. Producers reflected their concern as buyers in India are not willing to settle at the offered price and are negotiating at much lower levels. Ferro Chrome offers are assessed at around INR 79,000/MT (Ex-Odisha).

On the future outlook, Ferro Chrome market is expected to move down further until any positive changes in Chinese stainless steel market are seen.