Indian Ferro Chrome Prices to China Rises; Domestic Prices To Follow

Indian Ferro Chrome prices remains unchanged in the domestic market for the whole month amid dull market conditions. Meanwhile, Indian producers are offering at higher levels in line with Chinese prices, but it hasn't been accepted in the market amid the fiscal year-end lull.

Indian Ferro Chrome prices in the domestic market are assessed at INR 74000/MT. Although, some producers are offering at prices as high as INR76,000/MT which is yet not accepted in the market. It is likely that owing to the decrease in VAT rates - from 16% to 13%, domestic producers in China would also reduce Ferro Chrome prices and that could impact import prices as well. Export prices for South Korea and Japan are at 85 cents /lb and 86 cents/lb CNF respectively. However, prices for China were up to 84 cents/lb CNF China and Indian producers are pushing for 85 cents/lb.

Chinese Market
Chinese domestic spot Ferro Chrome price stagnated after rising for consecutively four weeks despite the news of increasing tender prices by around RMB 300/MT for Apr'19. Few mills expected to secure cargoes at a relatively lower price in April in line with the new VAT rate. Many market participants expected a rise of 500-600yuan per tonne. With the difficult market conditions, the increase of Chrome ore prices slowed down during the past week while waiting for the April Tender prices.

South Africa UG2 Chrome Ore concentrates (42% Cr) is being traded at USD 185/MT CIF China. Many market participants had expected that the Chrome ore price would strengthen further, but the chances for any significant rise is dim in the short term, Chinese domestic Ferro Chrome producers showed their unwillingness to accept a high rise in the Chrome Ore prices.