Indian Ferro Chrome Prices Edge Up on Chinese Demand

Ferro Chrome offers corrected upwards with demand rebounding from China.

China has recently witnessed an increase in stainless-steel production, and so its requirement for Ferro Chrome.

"Though the Chinese are producing the maximum limit of Ferro Chrome allowed by their government, they still need to import," said a source. Moreover, high Chrome Ore offers from Africa also adds on to the production cost, he added.

Another source revealed that a stronger Yuan against USD has also encouraged the Chinese producers to import. Also, trading activity for the material stocked at ports is also on a swift rise, with active restocking going on, as the transport system gets majorly disturbed during the Lunar New Year holidays. Moreover, inquiries from China have elevated as stock at the port is fast depleting.

SteelMint assessed export offers at 91-92 cents/lb CIF China. However, it has been heard that Chinese are resisting such offers and are unwilling to pay above 90 cents/lb.

Indian offers to Japan are at around 95 cents/lb and 94 cents/lb CIF Korea, but there have been no reports for any deals being concluded in this week.

Demand from domestic market also remains moderate but in line with Chinese offers, prices in India are assessed at INR 79,000/MT (Ex-Odisha). Few producers were also offering at INR 80,000/MT.

On the future outlook, market participants expect the Ferro Chrome offers to remain stable in the near term with fair chances to move up.