Due to a sharp upturn in Chinese demand and in ferrochrome prices, Indian ferrochrome producers are increasing their exports shipments, Ankit Patni, managing director of Rohit Ferro-Tech Limited, said on Tuesday, December 20.
“Improved Chinese demand and strengthening of prices has led to Indian producers shifting focus from meeting domestic demand to overseas markets like China,” Mr. Patni said.
“Six months ago domestic producers were able to sell only half of their production of ferrochrome alloys in international markets, while improved international market dynamics have prompted several domestic producers to now offer as much as 80 percent of production for international sale,” he added.
The Rohit Ferro-Tech official said that the firming up of the ferrochrome market could be gauged from the fact that prices of the alloy with 60 percent chrome content have on average increased to INR 110,000/mt (about $1,600/mt) at present from levels of around INR 60,000/mt (about $872/mt) six months ago.
However, Mr. Patni maintained that profit margins from ferrochrome alloy sales, despite the rise in prices, have been being tempered by the sharp rise in domestic prices of chrome ore.
He pointed out that at the last auction for chrome ore the price of the raw material had more than doubled to INR 25,000/mt ($363/mt) compared to the level of around INR 10,000/mt ($145/mt) at the chrome ore auction held two months previously.