India: Ferro Chrome prices Surges Up by INR 2000/MT

High Chrome Ore prices induced the rise in domestic prices of Ferro Chrome and demand from China also surged up which increased the prices of Ferro Chrome for China.

Producers in India are offering Ferro Chrome in the domestic market at INR 74000/MT. Export prices for South Korea and Japan were unaltered at 81 cents /lb and 82 cents/lb CNF respectively. However, offer prices for China were up to 80 cents/lb CNF China.

Demand from Japan and South Korea is absent as buyers want the commodity at much lower prices than that being offered by the producers. SteelMint learned that the freight charges are much higher for South Korea and Japan which is restraining the producers to provide the commodity at Chinese levels, moreover, the grade and size of the Ferro Chrome that is in demand in these countries are of much higher price levels.

Europe is also following the same trend as buyers from EU demand Ferro Chrome at Chinese prices. Market participants say that earlier due to GSP (Generalized System of Preference) European buyers were willing to pay higher. Since GSP is not applicable to the imports from India to Europe any more, European Buyers are demanding Ferro Chrome at much lower prices to compensate against the import taxes that are to be paid.

On the future outlook, with the power shortages in China, it can be deduced that the demand from China looks to be prevalent. However, most market participants believe to be in a wait and watch mode. Meanwhile, increasing Ore prices may increase the Ferro Chrome prices further.