- No change in stainless steel prices w-o-w
- Lower realisations in export market
Indian high-carbon ferrochrome (HC60%, Si:4%) prices remained steady with a slight weekly increase of INR 300/tonne (t) ($4/t). Market stability persisted as many participants sought more clarity regarding price trends.
According to BigMint’s assessment on 7 February, high-carbon ferro chrome (HC60%, Si:4%) prices were recorded at INR 118,800/t ($1,432/t) ex-works in Jajpur. Throughout the week, transactions totaling around 2,500 t were settled within the price range of INR 117,500-120,000/t ($1,416-1,446/t).
In contrast, prices for high-carbon low-silicon ferro chrome (HC60%, Si:2%) saw a weekly increase of INR 2,000/t ($24/t), reaching INR 127,100/t ($1,532/t) ex-works in Jajpur on 8 February.
Weekly market trends
Uncertainty surrounding market dynamics: Most of the producers in the previous few weeks raised their offers aligning with OMC’s chrome ore and Vedanta-FACOR’s ferro chrome auction results. But there was resistance amongst buyers which brought down the prices. Trades were still being concluded as regular operations had to be carried out.
Additionally, reports indicated that the market’s supply of low-silicon ferro chrome was restricted. “Production of Low Si ferro chrome is not an easy task. If there is no significant difference in prices of 4% Si & low Si ferro chrome, then it is better to produce normal 4% Si material”, quoted a producer.
Unchanged market conditions in China: Prices for ferro chrome (HC60%) in China were stable w-o-w at RMB 8,900/t ($107/t) exw-Inner Mongolia. As the holidays came near, trading activities also decreased. Many stainless steel mills are expected to undergo maintenance work which may reduce demand for ferro chrome. The export proposals from China also continued to be lower than the Indian domestic prices.
Stability in stainless steel prices: Prices for 304 grade stainless steel held steady w-o-w at INR 173,000/t ($2,085/t) exw-Mumbai. There was less demand in this industry, which led to fewer inquiries for ferro chrome.
Outlook
The trajectory of prices in the coming days will largely depend on how stainless steel producers respond to prevailing market rates. According to BigMint’s analysis, prices are expected to stay within a certain range or may inch down depending on stainless steel market conditions.