- Domestic stainless steel prices in India fall
- European benchmark ferro chrome prices increase q-o-q
Prices of Indian high-carbon ferro chrome (HC60%, Si:4%) decreased by INR 800/t ($10/t) w-o-w as compared to previous assessment on 22 March. Market participants continued to wait for clarity regarding the direction that prices would be moving in, resulting in price decline.
Indian high-carbon ferro chrome (HC60%, Si:4%) prices were standing at INR 113,200/t ($1,358/t) exw Jajpur on 29 March, according to BigMint’s assessment. Past week, around 1,400 t of trades were completed in the INR 112,000-114,500/t ($1,344-1,374) price range.
Furthermore, the cost of high-carbon low-silicon ferro chrome (HC60%, Si:2%) decreased by INR 500/t ($6/t) w-o-w, reaching INR 120,000/t ($1,440/t) exw Jajpur on 28 March.
Weekly market summary
Shifts in approach amid market fluctuations: In light of the market’s volatility in the preceding weeks, both buyers and sellers had to modify their approach. As financial year-end came near, sellers wanted to reduce their inventory to fulfill their financial commitments, while buyers postponed purchasing material. As a result, there was a decline in offers.
“Looking at the increase in offers post-OMC’s auction, we’ve currently withdrawn plans of procuring material,” a prominent stainless steel producer told BigMint.
Global trends: Ferro chrome (HC60%) prices in China remained steady w-o-w at RMB 9,150/t ($1,267/t) exw-Inner Mongolia. The demand for stainless steel remained low, but there was a little increase in spot trade activity due to the increase in Tsingshan’s tender prices for April.
South African producer Merafe also revealed European ferro chrome benchmark prices, which were at 152 cents/lb for second quarter of calendar year 2024 (Q2CY24). Prices increased by 8 cents/lb q-o-q majorly due to supply shortages caused by production cuts amid electricity supply issues.
Additionally, Nippon Steel raised bid prices of ferro chrome in Japan by 5.3% q-o-q to $1.6/lb. Reports also indicated an increase in stainless steel production during February-March 2024.
Drop in domestic stainless steel prices: Prices of 304 grade stainless steel in India dropped by INR 5,000/t ($60/t) w-o-w, to INR 173,000/t ($2,076/t) exw-Mumbai. Prices fell as a result of lower LME nickel prices and muted demand.
Outlook
According to BigMint’s analysis, prices might see further correction in the days ahead, although a significant decline is less likely.