- OMC’s chrome ore auction records uptick in bids
- Stainless steel holds steady despite muted demand
Indian high-carbon ferro chrome (HC60%, Si:4%) prices witnessed an increase of INR 1,400/t ($16/t) as against the previous assessment on 13 August. Offers from sellers went up due to limited supplies in the market and good realisation in exports.
As per BigMint’s assessment on 20 August, high-carbon ferro chrome (HC60%, Si:4%) prices in India were at INR 103,000/t ($1,184/t) exw-Jajpur. Approximately 1,800 t of deals were concluded last week in the price bracket of INR 100,000-104,500/t ($1,149-1,201/t) exw.
Prices edged up for low-silicon high-carbon ferro chrome too by INR 700/t ($8/t) w-o-w to INR 107,300/t ($1,233/t) exw-Jajpur. Meanwhile, low-carbon ferro chrome (C: 0.1%) prices held steady w-o-w at INR 199,700/t ($2,295/t) exw-Durgapur.
Market recap (14-20 August 2025)
Reduced domestic offering leading to market tightness: Last week’s market saw a supply crunch as only a handful of sellers were active. Some producers diverted volumes to the export market for better realizations, reducing domestic availability. Adding to the pressure, a major supplier was running at nearly half capacity, while five others, with monthly production of around 26,000-27,000 t, stayed out of the market. This led to a supply crunch, driving sellers to raise their offers. With buyers left with fewer options, deal prices eventually went up to INR 104,500/t ($1,201/t) exw levels.
Slight rise in bids at OMC’s auction: At OMC’s chrome ore auction on 19 August, 71,000 t were booked against 71,900 t offered. Most grades saw bids edge up by 1-2% (INR 50-449/t), while higher grades (Cr2O3: 52-54+) declined by 2% m-o-m (INR 407-418/t). Compared to the base prices, premiums increased slightly by INR 100-200/t, indicating mixed buyer sentiment across grades.
Chinese prices edge up: Ferro chrome (HC: 60%) prices in China edged up by RMB 100/t ($14/t) w-o-w to RMB 8,050/t ($1,122/t) exw-Inner Mongolia. Transportation efficiency at South Africa’s major chrome ore mines has improved, while Turkish export offers remain firm. Rising coke prices, supported by recovering steel demand, provided a cost floor for ferro chrome production.
Demand for ferro chrome improved with rising machinery manufacturing orders, while the building materials market remains stable. Export sentiment remains cautious as the market awaits the EU’s preliminary decision on China’s anti-dumping duties.
Indian stainless steel prices hold steady w-o-w: Stainless steel prices for 304 grade HRC remained steady w-o-w at INR 187,000/t ($2,143/t) ex-Mumbai. Market participants noted that sales continued to be sluggish due to weak demand, while the monsoon season in Maharashtra kept market activity subdued.
Meanwhile, India’s leading stainless steel coil producer has lifted prices of the 304-grade HRC and CRC by INR 5,000/t ($57/t), effective from yesterday. The hike in 304-grade prices comes despite scrap offers remaining unchanged.
Outlook
Ferro chrome prices are likely to remain elevated, with some sellers offering above INR 104,000/t ($1,195/t) exw. However, the extent of increase and sustainability of these elevated offers will largely depend on buyers’ acceptance.
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