India’s chrome alloys industry seems to be well-positioned amidst two factors. One is an apparent tug of war that is being played out on the global platform between two key players – the South African suppliers of chrome ore and chrome alloys and the Chinese buyers of chrome.
The second is the tussle between the ore miners and alloy producers in the domestic market.
Globally, the market is thus seeing a significant tussle of dynamics taking place and if neither player relents, in all likelihood, there will be a rollover of prices in March.
An important feature in the chrome alloy market is the exchange rate and how it has played out its role in impacting the ferro chrome markets internationally. The South African rand (ZAR) recently appreciated from 15.05 in December 2015 to 13.24 in February 2017, a 12 percent difference in an industry which is highly dependent on exports. This means the South African suppliers will have to make up in terms of prices. A 12 percent appreciation also means an almost ₹8,000-9,000 per ton price increase which would be a significant 7-8 cents. “Thus, there obviously has to be a tightening of prices from South African suppliers,” observed an industry source.
Conversely, the yuan has appreciated from 6.45 in December 2015 to 6.87 in February 2017, making imports a little more feasible. “So there will always be a tussle between South African and Chinese players when they have to buy chrome ore or coal.
We have seen a little strengthening of the Indian rupee but more importantly the ZAR has significantly appreciated which is going to give a tough time to the South African exporters,” the source added.
Two years ago, the ZAR had depreciated by almost 25 percent and consequently the South African suppliers had been able to price better.
In the 2.8 mt buying pie of China, South Africa leads, with 2.1 mt, which means both countries have enough muscle to pressure each other.
India’s share in China’s buying is at 0.1 mt and globally at 0.4 mt annually, which means almost 45-50 percent of what it produces is exported.
Diese Geschichte stammt aus der March 2017-Ausgabe von Steel Insights.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der March 2017-Ausgabe von Steel Insights.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Steel's Net Zero mission
The country’s commitment to achieving Net Zero within a targeted timeframe will now propel its steel sector towards a sustainable future in line with global trends.
Fuel Price Hike, Supply Chain Disruption Hurt Festive Sales
Supply chain disruptions and fuel price hikes have hurt festive sales in a big way as most auto majors posted decline in sales in October.
Seaborne coking coal offers remain range-bound
Seaborne coking coal offers moved in a narrow range in October amid global supply tightness and healthy spot demand.
Global crude steel output down 8% in September
China manufactured 74 mt in September, fall of 21% y-o-y while India’s production went up by 7% to 10 mt.
MOIL embarks on expansion projects
“Even though our country is blessed with manganese ore reserves, we import 50% of the domestic requirement. We have to lower our import dependence and save precious foreign exchange.” Ram Chandra Prasad Singh, Steel Minister
Iron ore handled by major ports down 17% in H1
The 12 major Indian ports handled 27 mt of iron-ore during H1 of 2021, down by 17% from 33 mt recorded for the corresponding period of previous year.
Shrinking China output to boost India exports
“In the third quarter of 2021, the company actively responded to the pressure from external policies, such as production curtailment and dual control system on energy consumption and intensity, as well as coal resource shortage and surging prices.” Baoshan Iron and Steel Co Ltd
Indian Railways' iron-ore handling up 25% in H1
Indian Railways in April-September of 2021 (H1) transported 84 mt of iron ore, up by 25% over 67 mt during April-September 2020.
September crude steel production up 7.2% y-o-y
India’s crude steel production in September 2021 grew 7.2 percent to 9.547 million tons (mt) over September 2020 but was down by 3.2 percent from August 2021 output, provisional steel ministry data showed.
“Five enablers: way forward to sustainable cleaner steel”
Right and scalable technology, appropriate policy guidance by government, access to finance to fund transition, willingness of customers to pay for cleaner products and infrastructure for use of new technologies are the need of the hour for the sustainable and cleaner steel industry, according to Madhulika Sharma, Chief Corporate Sustainability, Tata Steel.
