- Disruptions in chrome ore mining support higher prices
- Indian stainless steel tags firm, key mill eyes price hike
Indian high-carbon ferro chrome (HC60%, Si:4%) prices increased by INR 4,400/tonne (t) ($50/t) as compared to the assessment on 3 September. Prices rose following trades concluded at higher offers, which sellers had raised earlier. Tight supply, stemming from some suppliers staying away from the market, has led to the sharp uptrend in recent weeks.
As per BigMint’s assessment on 10 September, high-carbon ferro chrome (HC60%, Si:4%) prices in India were at INR 118,100/t ($1,338/t) exw-Jajpur. Prices hovered at nearly a 1.5-year high, with similar levels last seen in March 2024, as per data maintained with BigMint. Trades for around 2,700 t were recorded by BigMint last week in the price bracket of INR 113,000-124,000/t ($1,280-1,405/t) exw.
Additionally, prices of low-silicon high-carbon and low-carbon ferro chrome (C: 0.1%) increased by INR 7,700/t ($87/t) and INR 2,800/t ($32/t) w-o-w to INR 125,200/t ($1,418/t) exw-Jajpur and INR 209,800/t ($2,377/t) exw-Durgapur, respectively.
Market recap (4-10 September 2025)
Supply challenges push up prices: The ferro chrome market has witnessed upward momentum in recent weeks, with key sellers absent from the market for various reasons, such as lower chrome ore availability, and poor realisations. This has created a shortage of offers.
Additionally, heavy rains disrupted chrome ore mining in Odisha, restricting the supply of 60-grade material, which further supported higher offers. As trades remained steady this week at these higher offers, prices moved up.
However, with some major sellers gradually returning, it remains uncertain whether these elevated offers will hold. Buyers are also showing resistance to the sharp increase in prices, adding pressure to the market. Going ahead, the outcome of the upcoming Odisha Mining Corporation (OMC) chrome ore auction will play a crucial role in determining whether prices will continue their upward trajectory or see some correction.
Indian stainless steel market remains stagnant: Prices of stainless steel 304-grade hot-rolled coils (HRC) stayed unchanged w-o-w at INR 190,000/t ($2,152/t) exw-Mumbai. The flats market stayed weak, with traders offering some discounts to clear stocks. Demand was modest, improving m-o-m but below last year’s peak, while a leading stainless steel maker was reportedly planning a price hike, supported by firm raw material costs and a stronger dollar.
Imports remained limited due to BIS restrictions, impacting small- and medium-scale mills. Seasonal monsoon and festive slowdowns, along with liquidity pressures, further dampened industrial activity and market sentiment.
Chinese prices edge up: Ferro chrome (HC60%) prices in China went up slightly by RMB 100/t ($14/t) w-o-w to RMB 8,800/t ($1,236/t) exw-Inner Mongolia. Coal prices in Inner Mongolia declined slightly, easing cost pressures, while chrome ore tags stayed range-bound with stable supply from South Africa. However, outdated power infrastructure and rising port inventories prevented any strong upside. Ferro chrome producers focused on cost control and capacity management, adopting a cautious stance.
On the demand side, infrastructure activity boosted 300-series stainless steel, whereas prolonged real estate weakness hurt 200-series demand. Micro-carbon usage in batteries grew steadily but faced competition from nickel-based alternatives. Appliance-related policies supported medium-carbon grades.
Outlook
Sellers have increased offers further in the last few days. However, acceptance from key stainless steel buyers will determine the extent of price increase in the days ahead.
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