India: Ferro chrome prices stable w-o-w amid muted demand

Indian ferro chrome prices remained stable w-o-w owing to muted domestic and Chinese demand at higher levels.

According to SteelMint's assessment on 3 Feb'22, the current market prices are hovering at around INR 104,000 - 105,000/t exw-Jajpur. However, some producers tried to raise their offers this week but failed to fetch any deals at above INR 105,000/t.

Weekly highlights

• Domestic ferro chrome demand this week was sluggish due to buyers' reluctance to book at higher levels. Domestic offers, therefore, remained stable. In addition, ferro chrome prices also remained stable due to muted Chinese demand owing to the Lunar New Year holidays.
  
  
• In addition, the cost of ferro chrome production has increased due to a hike in coke prices in India - up by 11% m-o-m to INR 51,000/t from the eastern region. This prompted smelters to raise their offers, but buyers refused any further hike due to unacceptably high prices.
  
  
• Additionally, UG2 chrome ore prices increased to $185/t CNF China as Chinese inventories dropped to 3 million tonnes (mnt) from 4 mnt and producers expect robust demand after the New Year holiday. So, an increase in chrome ore prices also supports ferro chrome prices.
  
  

Outlook
Indian ferro chrome smelters are optimistic in terms of ferro chrome prices and demand as they are anticipating good demand from Chinese buyers post-the New Year holidays.