India: Ferro chrome prices fall on limited buying from China

Indian ferro chrome prices fell w-o-w due to weak demand from both domestic and export markets, particularly China, which accounts for nearly 25% of India's total production and has been consistently absent amid the spread of Covid cases.

Meanwhile, China's ferro chrome prices (HC60%) remained stable w-o-w at RMB 8,350/t ex-Inner Mongolia on 7 December.

Furthermore, domestic ferro chrome buyers resisted procuring at higher prices, which also impacted ferro chrome prices.

According to SteelMint's assessment on 8 December, smelters were able to conclude deals of around 4,000 t after reducing the prices to INR 94,500- 95,000/t exw-Jajpur this week.

Market highlights:

• Vedanta auctions trigger further fall in ferro chrome prices: Vedanta held ferro chrome auctions on 6 December, with bids received at the highest price of INR 94,600/t but participation was limited, putting additional selling pressure on producers and causing prices to fall.
  
  
• Material oversupply pulls down prices: Weak demand, combined with some producers restarting production, resulted in material oversupply in the Indian market. As a result of the selling pressure, producers were forced to reduce their offers.
  
  
• Producer optimistic amid hike in stainless steel prices: Prices of 304 grade stainless steel HRCs and CRCs increased by INR 2,000/t w-o-w as LME nickel prices rose. On 6 December, the price of 304 grade stainless steel HRC, ex-Mumbai, was recorded at INR 245,000/t ($2,974/t). However, this gives producers hope for an increase in ferro chrome prices.
  
  

Outlook
Domestic ferro chrome prices in India are expected to rise in the coming weeks as producers receive good inquiries for long-term contracts from the export market. Overseas buyers, primarily from China, are eager to secure material ahead of the New Year holidays, according to sources.