Indian Ferro Chrome Prices Increase Owing to Higher Chinese Tender Prices

Indian Ferro Chrome prices have increased by INR 1,000/MT amidst increased purchase tender prices released by Tsingshan group. The domestic market remains dull and most of the deals are happening with traders and merchant exporters. Stainless Steel mills are yet to open and thus the demand is truncated. The highest bidding price obtained for the Ferro Chrome sale tenders by IDCOL, held yesterday, was at INR 60,200/MT. Along with the domestic market, the export market also remains dull, producers reported that the prices have increased for Chinese deliveries, but the demand is slow. Meanwhile, demand from Europe and Japan remains dull.

Ferro Chrome prices in the Chinese spot market has increased and the South African Chrome ore prices have also escalated, which in turn has forced the Stainless-Steel mills to increase the Ferro Chrome tender prices for June deliveries. Today, Tsingshan group announced its tender price of HC Ferro Chrome for June at RMB 6,397/50 basis, up RMB500/50basis per ton delivered, tax included. Supply ex-Tianjin port will be lower by RMB150/50 basis per ton. Delivery before Jul 15.

The prices for Ferro Chrome assessed by SteelMint are as follows:
Ex-Jajpur: INR 63,000/MT,
CNF China: cents 67/lb,
CNF Japan: cents 70/lb, and
CNF South Korea: cents 69/lb.

Outlook
SteelMint assesses that in the domestic market producers may quote higher, however, the acceptance is questionable. Moreover, the industry is facing severe cash flow issues, and therefore deals are likely to be negotiated and closed at lower levels.