Indian ferro chrome prices stable despite healthy demand

Indian ferro chrome prices have been range-bound since the start of the year. Producers have been trying to increase prices on better domestic and Chinese demand, but buyers are not willing to accept higher prices.

Current prices in the Indian market are at around INR 96,000/t ex-Jajpur. Despite having healthy inquiries from China before the Winter Olympics and the Chinese New Year, offers remained rangebound at around cents 101-102/lb CNF China.

Domestic prices stable

Indian ferro chrome prices remained stable despite moderate demand in the domestic market. Meanwhile, China is stocking up the material ahead of the Chinese New Year holidays. Despite good demand, producers couldn't raise offers as they found no acceptance from buyers. Although, some traders and producers are offering at higher prices, but any deals are yet to be concluded.

Chinese ferro chrome prices find support

Chinese ferro chrome prices fell post-the tender announcements by Tsingshan. However, increased coke prices in China, and the rise in Covid-19 cases nearby Tianjin led to higher transportation costs of chrome ore which provided support to ferro chrome prices.

Outlook
Ferro chrome prices are expected to remain range-bound. Meanwhile, appreciating Indian currency is weighing down the confidence of Indian exporters to settle deals at lower prices.