- Around 3,200 t of deals concluded last week
- Stainless steel demand still dull, post-Budget
Indian high-carbon ferro chrome (HC60%, Si:4%) prices were largely stable, dipping marginally by INR 600/t ($7/t) w-o-w in comparison to the assessment on 29 January. Prices were steady as routine trading activities were carried out at current prices.
As per BigMint’s assessment on 5 February, Indian high-carbon ferro chrome (HC60%, Si:4%) prices stood at INR 97,500/t ($1,114/t) exw-Jajpur. Around 3,200 t of trades were reported to BigMint last week within the price bracket of INR 97,000-102,400/t ($1,108-1,170/t) exw.
Prices dropped by INR 1,350/t ($15/t) w-o-w to INR 103,550/t ($1,183/t) exw-Jajpur for low-silicon high-carbon ferro chrome. In addition, low-carbon (C:0.1%) ferro chrome prices too inched down by INR 600/t ($7/t) w-o-w to INR 207,200/t ($2,367/t) exw-Durgapur.
Market highlights (30 January-5 February 2025)
Lack of movement in the market: A seller recently said, “Ferro chrome prices have mostly bottomed out and there won’t be much of a downward pressure.” A similar opinion was shared by other market participants as the market lacked movement majorly in the stainless steel segment and in China.
However, some sellers also stopped sales while a few others opted for production cuts as well. A key domestic producer recently informed BigMint, “We’ve curtailed our production from around 25,000 t per month to 15,000 t/month as the current prices are not feasible for sustaining operations.”
Global scenario: The domestic market in China was mostly quiet last week due to the Lunar New Year holidays. Referring to the current market scenario, an Indian seller informed, “We’re not offering at present as we want to see how the market shapes up post-Chinese holidays. Their prices are expected to rebound post-holidays.”
Glencore, one of the leading ferro chrome producers globally, with an installed capacity of around 2.3 mnt, might have to shut down some of its ferro chrome furnaces by May 2025 if it can’t find a way to keep them profitable, sources informed. The company, which runs these smelters through a joint venture with Merafe, has been struggling due to tough market conditions and high costs. They have also been impacted by high energy costs as well as port and rail logistical constraints.
Continued weak conditions in India’s stainless steel segment: Prices of stainless steel 304 grade HRCs were steady w-o-w at INR 179,000/t ($2,045/t) exw-Mumbai. Demand-wise, the market still remained sluggish and liquidity issues further affected sentiments. People were looking forward to some improved sentiments post- the Union Budget for 2025-26 but no significant announcements were made. In the near term, the market is expected to sustain the current trends, with little hope of any positive movement.
Outlook
Considering existing market conditions, prices are likely to stay within the current range in the upcoming days with some slight downward adjustments.
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