India: Ferro Chrome Prices Head Northwards on Improved Chinese Demand

India Ferro Chrome prices surges as Chinese demand peaks up on strong steel fundamentals.

SteelMint assessed the Ferro Chrome prices at around INR 69,500/MT (Ex-Odisha). The producers claimed to have raised their domestic offers on account of sharp hike in export offers. Although, few producers were also heard to be offering at INR 70,000/MT and higher, but no deals were yet to be concluded at those levels.

“The domestic Ferro Chrome price is expected to remain firm, however a slight uptick in the coming days can't be ruled out,” said a producer source while revealing that a sharp hike in offers would not be accepted in Indian market.

On the other hand, Indian High Carbon Ferro Chrome spot prices have increased again, in line with higher stainless steel prices and robust demand from the Chinese stainless steel sector. There is also shortage of Ferro Chrome supply in China as most of the August production is already booked out.

The Chinese Stainless Steel prices have gone up on a sharp increase in Nickel prices and persistently healthy Stainless Steel demand in China.

Currently export prices for Indian origin Ferro Chrome (Cr 60%) are assessed at 85 cents/lb CNF China, 88 cents/lb CNF South Korea and 89 cents/lb CNF Japan. Demand from Japan and Korea remains moderate but constant. Indian producers are hopeful that elevated prices in China will soon help fetch higher prices in other Asian countries like Korea and Japan.

Market participants are bullish on the current market trend and are expecting a further rise in export offers for Ferro Chrome in sync with steady increases in both chrome ore and charge chrome prices to China.