India: Ferro Chrome Prices Remain Under Pressure on Quiet Trading

Indian Ferro Chrome price remains relatively stable but is under constant pressure on lackluster demand.

Chinese traders are pulling back from taking a position, expecting the major stainless steel firms to lower their purchase price for December. As a result, there is a lot of uncertainty on what price should they buy now.

A producer source mentioned that China has sufficient amount of Ferro Chrome after a continuous spell of increasing domestic Ferro Chrome production. Moreover, the Ferro Chrome market is persistently under pressure from falling Stainless Steel and Chrome Ore prices in China.

SteelMint assessed Ferro Chrome offers at 82 cents/lb CIF China, while counter-offers are way lower and buyers are showing reluctance on the aforementioned price. Following the Chinese market closely, Japan and South Korea also set their counter-offers at 87 cents/lb and 86 cents/lb respectively.

With prevailing weakness in Chinese Ferro Chrome market, offers in India has also been affected substantially.

"A constant deterioration of stainless steel market in China has created a bearish sentiment among the participants, pulling down the Ferro Chrome offers in India," said a producer justifying the correction in offers.

Ferro Chrome offer in India is assessed at INR 71,000/MT (Ex-Odisha), while counter offers are lower than the offered.

On further inquiry, the near-term outlook for the Alloy looks gloomy as offers could take a further hit in December.