India: Ferro chrome prices remain flat on muted Chinese demand

Indian ferro chrome prices remained flat w-o-w for the last couple of weeks owing to muted demand from domestic as well as Chinese buyers.

As per SteelMint's assessment on 10 Feb'22, current prices for HC60% grades are hovering at around INR 104,000-105,000/t exw-Jajpur.

Market highlights

• One of the major producers is engaged in the long-term export agreements. Consequently, the domestic market is experiencing a slight material shortage. Producers continued to stick to higher prices despite lower transaction volumes, as buyers are on a wait-and-watch mode.
  
  
• Vedanta's ferro chrome auction was concluded yesterday. Bid prices were at the same levels as the current market prices. The positive response in the Vedanta's auction supported ferro chrome prices.
  
  
• Chinese demand is still sluggish as buyers have not fully returned from the New Year holidays. Thus, Indian producers have kept their prices firm. After the Winter Olympics, activities in the Chinese market are expected to resume completely.
  In addition, slow in-land transportation movement also discouraged buyers from booking the material, resulting in steady ferro chrome prices.
  
  
• Moreover, Indian ferro chrome is costlier over Chinese material despite the latter seeing a marginal rise recently.
  
  

Outlook
The ferro chrome market is expected to do well after the Olympics as producers anticipate strong demand from China, which may support prices in the near future.