India: Ferro chrome prices remain stable on moderate domestic demand

Indian ferro chrome prices were firm w-o-w with a marginal uptrend seen amid moderate demand. Meanwhile, producers started offering a bit higher post-acceptance of last week's prevailing offers.

According to SteelMint's assessment on 11 May 2023, market participants concluded deals of around 2,000 tonnes at a price range of INR 107,000-108,000/t exw-Jajpur.

Indian ferro chrome prices yet to improve amidst subdued stainless steel sentiments Some buyers of ferro chrome in the domestic market negotiated hard and booked only what was necessary to avoid disrupting their production, resulting in moderate demand. Moreover, the demand for finished stainless steel in India has been on a continuous downtrend, although the scrap market has remained stable. INR 204,000/t ($2,485/t) exw was the price for 304-grade hot-rolled coils (HRCs), which dropped slightly.

Price hike in China to push Indian offers? Ferro chrome prices in China rose after the Labour Day holidays due to a slight recovery in production levels at stainless-steel mills, leading to increased buying interest in the domestic market. This was a positive development for the ferro chrome industry in China, and Indian producers are anticipating good demand from China, as evidenced by their deals of around 4,000t at around cents 101-102/lb to China on CNF basis this week, as assessed on 11 May.

However, producers in India have been unable to resist sharp price hikes due to dull demand from Japan and South Korea, which account for around 25% of India's total exports. It will be important to monitor these trends to determine their impact on the market in the coming weeks.

Outlook

Market participants expects some marginal upward correction as UG2 chrome ore prices increased this week due to good demand from China amid low inventory levels at the port side.