Indian ferro chrome prices increased by around INR 3,600/tonne (t) w-o-w due to a positive response to OMC’s chrome ore auction on October 19. High-grade material (52-54%) was booked at a 35% premium over the base price. This bullish response signalled a sudden green shoot of optimism amid an increase in production cost by around INR 10,000/t.
According to SteelMint’s assessment on 20 October, producers were offered at around INR 101,000-103,000/t exw-Jajpur depending upon the availability of stocks. However, following a good response to OMC’s chrome ore auction, producers began offering above at INR 103,000/t as of yesterday evening.
Market highlights
According to some ferro chrome sources in India, stainless steel producers are also in panic buying mode in apprehension of a hike in ferro chrome prices. Sellers also held on to their offers when they realized that prices have started increasing. Earlier they were selling at INR 99,000-100,000/t. But when they observed that prices had started increasing, some producers held their offers. This created a supply shortage of the material.
Furthermore, inquiries from China are increasing as supplies of ferro chrome have become scarce due to a drop in output because of Covid in some parts of the country. This also supported ferro chrome prices.
In addition, stainless steel prices in India are ruling higher and smelters are optimistic of demand and prices amid the festive season. Meanwhile, as of 18 October, Indian stainless steel (304 grade, HRC) prices were offered at INR 245,000/t exw-Mumbai. This also influenced smelters to maintain higher ferro chrome prices.
Outlook
Domestic ferro chrome prices in India are expected to remain firm. Furthermore, OMC’s chrome ore auction ended with a premium of around INR 4,000-5,000/t. This is causing ferro chrome producers to raise their prices even further as input costs rise.
Leave a Reply