India: Ferro Chrome Prices Surge on Expensive Ore

Indian Ferro Chrome producers have raised offers on the backdrop of surging Chrome Ore prices.

A recent auction by OMC witnessed an overwhelming response wherein the current bid price was up by around INR 3,700/MT against the previous price.

"A rise in Chrome Ore price has added significantly to the cost of production," said a source referring to the OMC auction bid price.

SteelMint learned that Ferro Chrome producers with captive ore mines are less affected than those who depend on OMC for their requirements.

Ferro Chrome quotations are observed to be quite irregular in the domestic market as producers with captive mines are offering at a lower price.

SteelMint assessed Ferro Chrome offers at INR 85,000/MT (ex-Odisha) while several quotations are higher than the abovementioned level.

Demand from China has been reportedly soft as Chinese buyers are yet to return from holidays.

"Trade at the Chinese spot market is very difficult owing to dismal demand," said a source, expressing concern about sluggish demand from the region.

Moreover, a fall in European Ferro Chrome benchmark prices to 115-128 cents/lb owing to saggy demand has also affected the CIF Japan and Korea prices.

However, Indian sellers have kept their offers unchanged at 84 cents/lb CIF China, 86 cents/lb CIF Korea and 87 cents/lb CIF Japan.

On future outlook, market participants expect Ferro Chrome prices to edge up further riding on the back of expensive ore.