India: Ferro Chrome Prices Remain Stable Amid Low Production

Indian Ferro Chrome producers have been going through tough times. The prices are however supportive in the current times due to lower production. Few of the smelters without captive power and Chrome Ore mines have already shifted to Silico Manganese and therefore, there is reduced supply in the market. However, the shortage could not boost the prices of Ferro Chrome much. Buyers are asking for much lower prices. Meanwhile, Ferro Chrome producers are waiting for the Chinese market to open. Producers firmly believe that only after the Chinese market reopens after the holidays any movement can be foreseen in the market.

South African Chrome Ore Prices
UG2 Chrome ore prices have been stable amid Chinese New year holidays, which has been now extended due to health concerns over the spreading of coronavirus infection. China is experiencing lockdown in many parts of the country and the transportation has been cancelled, amid such severe conditions. The New year holidays have been extended to the 2nd of Feb. However, the producers of Chrome ore are optimistic that the prices will be increasing for Chrome ore from South Africa as there is a seasonal uptrend in the demand from China post-New year holidays. Moreover, with Samancor cutting down its production, supply shrinkage is likely to hit the Chrome ore market and this may also support the Chrome ore prices.

In the domestic market, Ferro Chrome Prices are assessed to be at around INR 65,000/MT Ex-Jajpur. Meanwhile, it is also heard that the buyers are asking for much lower prices, but acceptance for the same is still lagging. In the export market, the prices remain unchanged. Offers for CNF South Korea (10-50 mm, HC 60%) is at around 65 cents/lb, CNF Japan (10-50 mm, HC 60%) is at 66cents/lb and for China, the prices are at around 62cents/lb CNF. Trading in the export market remained absent amid ongoing holidays.

On the future outlook, the prices may remain stable for now. However, market participants are waiting for direction from post-Chinese holidays demand.