IRON and STEEL
Indian Ferro Chrome prices fell again for consecutively five weeks in line with lacklustre stainless steel demand, prompting Stainless Steel producers to reduce production, and thereby adversely affecting demand for Ferro Chrome.
Producers reported that the market is more inclined towards the buyers’ side. Buyers are trying to bring market down as they are demanding material at much lower levels. Demand is also very low in the domestic as well as global market. Market participants believe that with China lowering down the prices, there is a pressure developing on the producers to lower prices further down. However, manufacturers are waiting for the upcoming Chrome Ore Auctions which were postponed to 17th May due to Cyclone Fani, and see if their cost of production comes down.
Domestic price for Ferro Chrome in India is assessed to be at INR 70,000/MT Ex-Jajpur. Export prices for CNF South Korea (10-50mm, HC 60%) is 81 cents/lb, for CNF Japan (10-50mm, HC 60%) is 82 cents/lb and for CNF China (10-150mm, HC 60%) is around 80 cents/lb.
On the future outlook, there is a very little chance of Ferro Chrome market to rebound in the near future. Any comments can be made only after the Chrome ore Auctions. Chrome Ore prices along with restricted demand for Ferro Chrome are keeping the producers far away from optimism.