India: Ferro Chrome Producers Lower Prices on Depreciation of Indian Currency

According to Mining News Pro - Indian producers are looking for exports and are willing to lower the prices to conclude deals. There is high anticipation in the market among the highly leveraged producers of clearing the stocks before the Financial year ends. Meanwhile, buyers are negotiating hard and most of the Ferro Chrome producers believe that prices may further fall.

In the domestic market, Ferro Chrome Prices are assessed to be at around INR 59,000-60,000/MT Ex-Jajpur. In the export market, prices remain unchanged due to near to zero transactions. The offers in the market are as under
• CNF South Korea (10-50 mm, HC 60%) is at around 65 cents/lb
• CNF Japan (10-50 mm, HC 60%) is at 66cents/lb
• CNF China, the prices are at around 62cents/lb

Chinese Market:
The Chinese Ferro Chrome market is impatiently waiting for the major Stainless Steel Mills to release their tender prices for the next month. Prices of UG2 Chrome Ore and the spot prices of Ferro Chrome weakened as the demand for Ferro Chrome dampened after the Stainless Steel mills reduced their production. China’s Steel production was largely reduced amidst logistics concern over COVID-19. However, market experts believe that the situation is ought to be sluggish in the near future due to a weak domestic market and the alarming fear of losing the export market following the outbreak in South Korea and Japan, major two Stainless Steel market for China. Producers believe that Ferro Chrome producers are facing a loss, and at this situation, the tender prices may either remain flat or further decline.

Future Outlook
Prices may further decline amid intense selling pressure in the market. Post- OMC Chrome Ore Auctions in India, few market experts commented that past two auctions received highly aggressive bidding, unlike the recent auctions. Most of the producers have sufficient inventory and due to the down-trending Ferro Chrome market, they are unwilling to take any further risk of overstocking.