Indian Ferro Chrome Prices Adrift on Limited Buying Interest

Indian Ferro Chrome market has come under pressure given limited buying appetite for Ferro Chrome from China and the underlying weakness in the stainless steel market.

The mainstream price of HC Ferro Chrome 60% min. is around INR 79,000 /MT (Ex-Works Odisha).

Market sentiment in India remained bearish, with most agreeing that there could a further dip in prices in the near-term. "Market is dull as participants are in a wait-and-watch mode," said a source referring to the cautious stance taken by the Indian buyers.

A weak stainless-steel market in China and Europe has been detrimental for the Ferro Chrome producers as they have been witnessing little or no demand for the commodity from China.

"Domestic players in China are already high on Ferro Chrome inventory and are finding it difficult to realize their commodity," said a producer source referring to the less dependency of China on the commodity's imports. December tender prices from major Chinese stainless steel mills are likely to be announced next week and almost everyone in the market accepts that the prices will be lower by at least Yuan 200-300/MT.

Indian Export offers for Ferro Chrome have slipped to 79 cents/lb CIF China, while Chinese buyers are still reflecting a reluctance to accept aforementioned offers and are not showing acceptance.

Keeping an eye on the Chinese Ferro Chrome market, Japan and Korea also reflected cautiousness in their purchase, and are waiting patiently for Chinese Ferro Chrome tender prices to be announced before making any move. Offers to Japan and Korea remained stable at 84 cents/lb and 83 cents/lb CIF respectively.

Considering the high Ferro Chrome inventory with Chinese suppliers and negative views in the Stainless Steel market, UG2 Chrome Ore prices could also come under pressure. There are talks of negotiations between the Chinese importers and South African sellers to bring down prices to around USD 165/MT CIF China December shipments.

SteelMint learned that the manufacturers of Ferro Chrome are weighed down by deteriorating external demand and destocking pressures, with most seeing little chance of an upswing in prices. Whereas, some agreed that there could a further dip in prices in the near-term.

On the future outlook, most market participants hold a pessimistic outlook towards the future market trend as Ferro Chrome prices are expected to slip downwards in line with major Chinese stainless steel mills reducing their tender price for December.