Indian Ferro Chrome Prices Down on Oversupply and Weak Demand

Indian Ferro Chrome prices drifted further downwards amid a deteriorating Chinese stainless steel market resulting in low demand for the Alloy.

Being pegged with the Chinese market, the Indian Ferro Chrome prices took an extra hit on account of sinking Chinese Ferro Chrome prices.

Weak stainless steel market in China has compelled manufacturers to cut their production, limiting the demand for Ferro Chrome. Hence, Chinese Ferro Chrome producers and traders are aggressively selling to clear their stocks as they expect the prices to slide further.

"Considering sufficient domestic Ferro Chrome supply in China, the stainless steel producers are less dependent on imported alloys," said an Indian producer expressing his concern on lowering prices of the commodity.

SteelMint assessed Ferro Chrome offers at 86-87 cents/lb CIF China but deals are yet to be concluded at aforementioned levels.

SteelMint learned that Japanese stainless steel mills have enough Ferro Chrome stocked with them and are only observing the market. Similarly, only one deal was heard to be concluded with a Korean company.

The export offers are assessed at 90 cents/lb CIF Korea and 91 cents/lb CIF Japan.

"Falling Ferro Chrome prices have exerted pressure on Chrome Ore offers," exclaimed another source. The 40-42 grade South African Chrome ore prices are assessed at around USD 210/MT CIF China.

The Indian market reflected a similar trend wherein the sellers are finding it difficult to conclude deals at INR 75,000-76,000/MT (Ex-Odisha).

"The buyers are cautious at the time as they fear a further drop in prices," said a source referring to the silent Indian market. Only the buyers with urgent requirement are making the purchase, he added.

On the future outlook, the Ferro Chrome prices are expected to go down further with market participants predicting the stainless steel mills in China may substantially reduce their purchase tender price for May.