- China’s domestic ferro chrome prices hold firm
- OMC’s chrome ore auction scheduled on 21 May
In comparison to the previous assessment on 8 May, prices of Indian high-carbon ferro chrome (HC60%, Si:4%) decreased by INR 1,100/t ($13/t) w-o-w. Prices fell as lower bids were fetched in Vedanta-FACOR’s auction which paved the way for market offers.
According to BigMint’s assessment on 15 May, high-carbon ferro chrome (HC60%, Si:4%) prices were INR 106,600/t ($1,277/t) exw-Jajpur. Last week, approximately 2,000 t of deals were finalised within the price bracket of INR 106,000-107,300/t ($1,270-1,285/t).
Prices of high-carbon low-silicon ferro chrome (HC60%, Si:2%) exw-Jajpur were stable w-o-w at INR 114,200/t ($1,368/t). However, the price of low-carbon (C:0.1%) ferro chrome declined by INR 2,500/t ($30/t) w-o-w to INR 237,000/t ($2,838/t) on 16 May.
Market analysis
Market response post-auction: Vedanta-FACOR’s auction on 8 May fetched H1 price of INR 106,200/t ($1,272/t) exw. Following this, market offers also reached similar levels. But when production cost dynamics were taken into account, offers stopped declining and discounts were limited to bulk orders.
Also, OMC’s ferro chrome auction was scheduled today for 2,050 t but technical issues prevented the auction from yielding any results, according to sources.
Additionally, sources suggested that some producers are planning to move to producing manganese alloys, and some have already begun doing so, in light of the recent increase in their prices.
China’s domestic ferro chrome prices witness stability: Prices of ferro chrome (HC60%) in China were stable w-o-w at RMB 9,050/t ($1,254/t) exw-Inner Mongolia. Demand in the spot market remained sluggish and low trading activities were observed. Although, sources said that the price of UG2 chrome ore increased by about $5/t to $305/t.
An Indian producer who mostly serves the export market informed BigMint, “There is less demand for ferro chrome from China and Europe. And since input costs are higher in the Indian domestic market, further price declines are unlikely.”
Uptick in stainless steel prices: Prices of 304 grade stainless steel increased by INR 2,000/t ($24/t) w-o-w to INR 177,000/t ($2,120/t) exw-Mumbai. This resulted from a $650/t w-o-w increase in LME nickel pricing. The market has not yet picked up speed, and stability is anticipated in the days ahead.
Outlook
The outcome of OMC’s chrome ore auction on 21 May will determine future price trends.