India: Ferro Chrome Producers Keep Prices Firm

Indian Ferro Chrome Prices remain firm in the domestic market. Supply of Ferro Chrome in the domestic market is low as the Ferro Chrome Producers who depend on Merchant miners for their Chrome ore requirements are low in inventory of Chrome Ores. Many producers are running out of finished stock and hope that the supply of Chrome ore situation may stabilize soon.

TISCO increased the HC Ferro Chrome purchase price in the fourth quarter by 400 RMB / 50 base tons (USD 56.41/50 base MT) from last month. Such increase of prices in the local Chinese market is attributed to the Chinese currency depreciation. Producers in China are more inclined towards the domestic market as the currency fluctuations are so abrupt that they lack confidence in importing material.

Meanwhile, this increase in the Ferro Chrome prices in the Chinese market has set positive sentiments among the Ferro Chrome producers and they are willing to keep the prices stable for the present week. An Odisha based producer shared with SteelMint that they are expecting the prices to rise in the next month post-OMC Chrome Ore auctions. The prices of Chrome ore will be increasing in the upcoming auction and it is not profitable for the producers to sell Ferro Chrome at any lesser cost than INR 70,000/MT, he added. However, such a rise in prices is highly unpredictable and can only be assessed if the finished Stainless Steel market picks up.

Currently, domestic prices for Ferro Chrome in India is assessed at around INR 66,000/MT. However, a few deals were heard to be concluded at INR 65,000/MT from the West Bengal region. Offers for CNF South Korea (10-50 mm, HC 60%) is at around 75 cents/lb, CNF Japan (10-50 mm, HC 60%) is at 76 cents/lb and for CNF China the prices are at around 72 cents/lb.

On the future outlook, the rise is price seems a possibility. Meanwhile, the market remains quiet in this week as the producers wait for the upcoming OMC auctions and limited demand leading up to China's Golden Week holidays.