India: Ferro Chrome Prices Struggle in Bearish Market

Indian Ferro Chrome producers kept their prices unchanged despite lackluster demand.

"We have been facing a selling pressure as demand for Ferro Chrome is seemingly petering out amid a hike in global Chrome Ore price, which has been an addition to the overall cost," disclosed a source expressing his concern on the current market scenario of the commodity.

In addition, another source commented that the falling demand for flat stainless steel in India had made the buyers cautious about their Ferro Chrome purchase. High Chrome Ore prices are lending a support to the Ferro Chrome market to maintain stability, he further added.

SteelMint assessed Ferro Chrome prices to be unchanged at INR 85,000/MT (ex-Odisha). However, it is heard that a major producer has concluded a deal at much lower level.

"Demand from overseas has also been disappointing," said another source referring to the dried-up demand from China. Moreover, a recent correction in the purchase price by major steel mills in China has also affected the sentiment.

The export offers are assessed at 83 cents/lb CIF China, 87 cents/lb CIF Korea and 88 cents/lb CIF Japan. Quotations for Japan and Korea have been raised lately to cope with the rising cost, however, successful deals are yet to be concluded.

On the future outlook, market participants are expecting the Ferro Chrome prices to plunge further on weakening demand for the commodity.