- FACOR’s ferro chrome auction closes at INR 106,400/t
- Domestic stainless steel prices inch up w-o-w
Indian high-carbon ferro chrome (HC60%, Si:4%) prices remained steady in the beginning of this week with a slight increase of INR 300/t ($4/t) as compared to the previous assessment on 17 April. Prices remained steady as post-auction scenario of OMC and Vedanta-FACOR was yet to be seen in the market.
As per BigMint’s assessment on 24 April, Indian high-carbon ferro chrome (HC60%, Si:4%) prices stood at INR 108,600/t ($1,303/t) exw-Jajpur. Furthermore, prices of high-carbon low-silicon ferro chrome (HC60%, Si:2%) prices dropped by INR 1,300/t (16$/t) w-o-w, reaching INR 113,600/t (1,363$/t) exw-Jajpur on 25 April.
However, prices are likely to drop post-lower bids in FACOR’s auction held yesterday.
Market Overview
FACOR, OMC auctions’ outcome influence industry outlook: Recent auctions by Vedanta-FACOR and OMC have stirred uncertainty regarding the trajectory of ferro chrome prices. OMC’s auction on 19 April saw chrome ore prices soar, fetching premiums of INR 2,000-9,200/t (12%-41%) above floor prices for the entire 65,000 t quantity.
Conversely, FACOR’s ferro chrome auction witnessed subdued activity, the bigger lot (10-150 mm) secured an H1 price of INR 106,400/t exw, matching the base price. However, bids fell by INR 3,800/t m-o-m with market players hesitant to secure materials at higher prices. With both auctions concluded, the industry is now in a wait-and-watch mode, anticipating clarity in the market direction over the coming days.
China’s domestic ferro chrome prices stable w-o-w: Ferro chrome prices, particularly for HC60%, maintained stability at RMB 8,950/t ($/t) exw-Inner Mongolia. Despite an average trading atmosphere and performance, high-carbon and medium-carbon ferrochrome prices remained unchanged, while low- and micro-carbon ferrochrome prices saw a decline. The recent stability and slight loosening of chromium ore prices have weakened ferrochrome plants’ resolve to support prices. China’s interest in Indian material at competitive rates, around 97-99 cents/lb, has spurred domestic producers to negotiate firmly, given the significant gap of around INR 4,000/t between China’s counter offers and domestic spot prices for ferro chrome. However, producers are hesitant to sell at lower prices to the Chinese market.
Stainless steel prices show modest w-o-w increase: In the stainless steel finished market, prices experienced a slight uptick of INR 3,000/t. BigMint’s assessment places 304 HRC at INR 177,000/t and 316 HRC at INR 308,000/t. This marginal rise in stainless steel finished product prices is linked to the uptrend in nickel prices on the LME, which surged by $1,355/t w-o-w. Nickel prices for 3-month delivery on LME registered a notable 7.5% increase, reaching $19,325/t, while LME warehouse stocks of nickel stood at 76,878 t.
Outlook
With recent auctions concluded, the market awaits revised offers. Current market conditions appear volatile, and further developments are anticipated in the days ahead.