India: Ferro chrome prices rise w-o-w on tight supply, market eyes OMC chrome ore auction outcome

• Base prices at OMC’s chrome ore auction rise 4% m-o-m
• Sellers lift offers but demand remains low at higher tags

Indian high-carbon ferro chrome (HC60%, Si:4%) prices experienced an uptick of INR 1,000/tonne (t) ($12/t) as compared to the previous assessment on 12 February. Most market participants were in a wait-and-watch mode ahead of the chrome ore auction from the Odisha Mining Corporation (OMC). Hence, sellers offered a limited volume in the market.

As per BigMint’s assessment on 19 February, Indian high-carbon ferro chrome (HC60%, Si:4%) prices were at INR 99,500/t ($1,145/t) exw-Jajpur. Deals for around 2,000 t were concluded last week within the price bracket of INR 97,500-99,500/t ($1,122-1,145/t) exw.

Market updates (13-18 February 2025)

Wait-and-watch mood emerges: Most sellers awaited further clarity on the market scenario in the near future. Thus, they adopted a wait-and-watch stance, maintaining the previous week’s offers. Sellers expect a price rise to up to INR 101,000-102,000/t ($1,163-1,174/t) exw in the short term, but buying interest was lower at elevated offers, which made sellers hesitant about offering material in the market.

Commenting on this, a seller informed BigMint, “We are offering material at INR 100,000/t ($1,151/t) exw but receiving bids of INR 98,000/t ($1,128/t) exw.”

Base prices rise at OMC’s chrome ore auction: A total of 84,500 t of chrome ore has been put up for sale at today’s auction by OMC, with the offered volume going up by 7,600 t m-o-m. Base prices of most grades increased by 4% (INR 709-878/t), while tags of material from COBP, JK Road, dropped 12% (INR 2,463-2,724/t) from the previous auction.

Market participants awaited the auction results. With a rise in base prices of chrome ore, ferro chrome tags may increase. Sellers are expected to revise their offers accordingly.

China’s market remains stable w-o-w: Ferro chrome (HC60%) prices in China were steady w-o-w at RMB 7,600/t ($1,044/t) exw-Inner Mongolia. Following the Lunar New Year holidays, prices had gone up by RMB 400/t ($55/t) amid tight availability in the spot market due to sellers preferring long-term contracts and production cuts. Despite the higher prices, buyers in China preferred domestic material only, as its tags were more competitive in comparison to imported material.

Outlook

All eyes are on today’s chrome ore auction by the OMC. Its results will decide the price trajectory in the days ahead.