India: Weak demand weighs on ferro chrome prices

Indian ferro chrome prices dropped by INR 3,000/t w-o-w owing to weak demand as the domestic stainless steel market remained under pressure.

According to SteelMint's assessment on 16 March, 2023, a majority of smelters were offering at around INR 115,000-116,000/t exw Jajpur.

Factors weighing on ferro chrome prices

• Weak demand: India's ferro chrome prices dropped as demand was muted on domestic and export markets. A majority of buyers were silent anticipating further drop in prices.
  Furthermore, Chinese demand slowed as a result of increased production. In February, Chinese high-carbon ferro chrome output was 545,500 t, up 51,500 t or 10.43% from the previous month and 46,200 t or 9.25% y-o-y. The output of high-carbon ferro chrome is expected to increase to 569,300 t in March. Because of the slower-than-expected recovery in consumption, stainless steel mills have frequently announced plans to reduce production. This has shifted the buyers' attention to Chinese domestic material and resulted in lower Indian ferro chrome prices.
  
  
• Stainless steel prices fall: Stainless steel prices in India continued to fall this week. The market has once again declined. "Because of the end of the fiscal year, March is a difficult month for sellers. Another month of lower demand is possible," a dealer from Mumbai shared. The 304-grade hot-rolled coil (HRC) prices, ex-Mumbai, dropped INR 1,000/t ($12/t) w-o-w to INR 225,000/t ($2,720/t), assessed on 14 March. This had an effect on ferro chrome prices as well.
  
  

Outlook
Higher cost of production in China and the opening up of the economy could boost demand and push ferro chrome prices upward, sources informed.