India: Ferro Chrome Prices Remains under Pressure Due To Sluggish Demand

Indian Ferro Chrome market remained under pressure amid bearish market sentiments. Producers reported that the market is more inclined towards the buyers' side. Buyers are trying to bring market down as they are demanding material at much lower levels in line with sinking Chinese prices. Demand is also very low in the domestic as well as global market. Market participants believe that with China lowering down the prices, there is a pressure developing on the producers to lower prices further. Meanwhile, the Chrome Ore Prices have also been falling drastically in the seaborne market. Ferro Chrome demand is also affected by the falling Stainless Steel Prices in the global market.

Taiyuan Iron & Steel (Tisco) released its June tender price for HC Ferro Chrome at 6,550 RMB (USD 949) per tonne, 350 yuan per tonne lower than its May tender price. This was followed by Tsingshan and Baosteel, who both cut down their purchase prices for June by 350 yuan per tonne. There has been little to no business done in Japan and Korea this week but spot Ferro Chrome price indications have to go down because in China, the market is going down.

Domestic price for Ferro Chrome in India is assessed to at around INR 67,000/MT Ex-Jajpur. Export prices for CNF South Korea (10-50mm, HC 60%) is 78 cents/lb, for CNF Japan (10-50mm, HC 60%) is 79 cents/lb and for CNF China (10-150mm, HC 60%) is around 76 cents/lb.

On the future outlook, there is a very little chance of Ferro Chrome market to rebound. Falling Chrome Ore prices along with restricted demand for Ferro Chrome are keeping the producers far away from optimism. Market sources believe that the prices may go further down due to the lowered Chinese Prices of Ferro Chrome and willingness by Ferro Chrome producers to cut offers to conclude deals.