- Selective buying persists as demand improves
- LME nickel prices remain rangebound
Indian high-carbon ferro chrome (HC60%, Si:4%) prices edged up by INR 800/t ($9/t), as compared to the last assessment on 30 July, supported by limited supply and modest demand recovery, while stainless steel demand stayed weak.
Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices were assessed at INR 100,500/t ($1,146/t) exw-Jajpur, as per BigMint’s assessment on 6 August. Around 640 t of deals were concluded last week within the price range of INR 100,000–102,000/t ($1,140-1,162/t) exw.
Prices for low-silicon high-carbon ferro chrome inched up by INR 900/t ($10/t) w-o-w to INR 105,400/t ($1,201/t) exw-Jajpur. Approximately 1,450 t were traded within the range of INR 105,500–107,000/t ($1,202–1,220/t) exw. Meanwhile, prices for low-carbon ferro chrome (C: 0.1%) went up by INR 1,700/t ($19/t), reaching INR 199,700/t ($2,276/t) exw-Durgapur.
Market recap (31 July- 6 Aug)
Limited supply lifts domestic offers: The ferro chrome market witnessed a mild supply crunch, as several producers are already booked or supplying to export orders. Additionally, some key sellers have shifted production to low-silicon and low-carbon ferro chrome, further reducing the availability of standard-grade material in the local market.
In response, sellers have raised their offers to INR 102,000/t and above. Although buyers remained cautious, a gradual improvement in demand has supported a slight w-o-w price uptick.
Chinese prices remain stable w-o-w:Ferro chrome (HC 60%) prices in China inched up by RMB 100/t ($14/t) week-on-week to RMB 7,950/t ($1,106/t) ex-works, Inner Mongolia. Production capacity utilization remained stable, ensuring sufficient market supply. However, weak downstream demand continued to dampen trading activity.
With no recent policy changes affecting the industry, market sentiment stayed cautious. Traders largely adopted a wait-and-watch approach in anticipation of potential announcements on steel production quotas.
While raw material costs provided some cost support, profit margins remained thin, keeping pressure on smelters. Liquidity stayed balanced, with no signs of speculative activity, pointing to a subdued yet stable market environment.
Mixed trends in stainless steel market
BigMint’s benchmark assessment for 304 grade HRC dropped marginally by INR 2,000/t w-o-w to INR 185,000/t ex-Mumbai. Market sentiment in India’s stainless steel sector stayed muted, as buyers remained cautious following the newly announced BIS certification rules for imports and ongoing fluctuations in LME nickel prices.
At the time of reporting, three-month nickel prices on the London Metal Exchange (LME) stood at $15,100/t, range-bound w-o-w. Nickel stocks at LME-registered warehouses stood at 211,254 t, up 3% w-o-w compared to 204,912 t in the previous week. Demand for stainless steel may improve after monsoon, driven by seasonal restocking ahead of festivities.
Outlook
Ferro chrome prices are likely to fluctuate in the near term, supported by tight supply and subdued demand from the stainless steel sector.
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