India: Ferro chrome prices inch down as buyers bargain hard

Indian Ferro Chrome prices inched down marginal w-o-w amid dull demand from spot market as buyers are reluctant booking the material at higher prices, pressurizing the producers to lower their offers.

According to SteelMint's assessment on 20 April 2023, Majority of producers were offering at around INR 100,000-101,000/t exw Jajpur. Meanwhile, hard negotiation by end users amid bearish stainless-steel market forced producers to conclude their deals of around 4,000 t this week

Market Highlights:

• Limited buying at higher prices: The domestic buyers of ferro chrome resisted buying at higher levels. Furthermore, tepid demand from the Chinese market owing to persistent weak demand and lower bids heard in the market. However, Sources highlighted that stainless steel mills in China increased production, although very slightly, but Chinese buyers were asking material at lower prices, led to lower the offers.
  
  
• Stainless steel prices firm: Domestic stainless-steel prices in India remained stable this week amid moderate demand. Meanwhile, prices of 304-grade hot-rolled coils (HRCs) were at INR 205,000/t ($2,493/t) exw, assessed on 18 April 2023. As a result, ferro chrome producers protected from sharp fall.
  
  
• OMC's chrome ore auction receives good response: OMC held an auction for 83,700t of various grades of chrome ore (Cr2O3: 40-54%) on April 18. Despite the fact that the market had been gloomy for some time, aggressive bidding was seen at the auction, as smelters were eager to stock up on material before the rainy season arrived. Furthermore, the anticipation of high demand in the near future contributed to the positive response during the auction.
  
  

Outlook
Indian ferro chrome prices are expected to remain under pressure as the finished stainless steel sector remained under pressure compared to the previous week, with further price cuts seen in the domestic market, sources informed.