- Bids drop m-o-m in OMC’s auction
- Vedanta-FACOR’s upcoming auction on 21 Mar’25
Indian high-carbon ferro chrome (HC60%, Si:4%) prices remained largely stable, inching down slightly by INR 350/t ($4/t) as compared to the previous assessment on 12 March. Prices were steady as the majority of market participants were awaiting the results of OMC’s chrome ore auction and the unfolding market dynamics.
High-carbon ferro chrome (HC60%, Si:4%) prices were INR 101,000/t ($1,170/t) exw-Jajpur, as per BigMint’s assessment on 20 March. Approximately 2,000 t of trades were recorded by BigMint within the price range of INR 101,000-103,000/t ($1,170-1,193/t) exw.
Prices were unchanged w-o-w for low-silicon high-carbon and low-carbon (C:0.1%) ferro chrome at INR 105,250/t ($1,219/t) exw-Jajpur and INR 205,000/t ($2,374/t) exw-Durgapur, respectively.
Market recap (13-19 March)
Auction results impact prices: The monthly chrome ore auction by OMC continues to be a major deciding factor for ferro chrome prices. With the auction scheduled for 20 March, the market was mostly inactive last week as they were looking forward to post-auction market clarity. A seller told BigMint, “Prices are at the same levels and we expect movement only after the OMC auction.”
However, in today’s auction, response was largely subdued as only 24,500 t of material was booked out of 115,000 t offered. Final bid prices also dropped by 1-26% (INR 129-7,966/t) m-o-m for most grades. This is yet to be verified at the time of reporting.
So in the coming few days, how the market adjusts will be closely watched.
China’s market trends: Ferro chrome (HC60%) prices in China went up by RMB 250/t ($35/t) w-o-w to RMB 7,950/t ($1,099/t) exw-Inner Mongolia. The continued rise in chrome ore prices and production cuts helped to raise prices. Nevertheless, stainless steel mills were cautious in purchasing material as tender prices for this month were lower than spot prices.
Rise in domestic stainless steel prices: Prices of 304-grade stainless steel hot-rolled coils (HRCs) exw-Mumbai reached INR 181,000/t ($2,096/t), rising by INR 2,000/t ($23/t) w-o-w. Despite weak demand, prices increased due to a price hike by major coil manufacturer for 300-series products. The producer’s prices of 304- and 316-grade HRCs and cold-rolled coils (CRCs) rose by INR 2,000/t ($23/t) due to an increase in prices of nickel, a key raw material. This was the second consecutive upward revision this month.
Buying activity, however, remained sluggish as buyers held off purchases due to the fiscal year-end. Exports were also weak, primarily due to subdued sentiment in the EU market. However, demand is expected to rebound by mid-April as market conditions gradually stabilse.
Outlook
Currently, the market trends remain unclear as OMC’s auction has fetched lower bids. The upcoming auction by Vedanta-FACOR tomorrow will be closely watched by market participants.
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