- Chinese mills raise Feb’26 tender prices by RMB 50/t ($7/t)
- Expiry of EC limits, tender fulfilment tighten Indian supply
Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices increased by INR 3,500/tonne (t) ($38/t) on 21 January as compared to the previous assessment on 14 January. Limited material supply and strong export realisations due to firm demand from China encouraged sellers to increase their offers.
High-carbon ferro chrome (HC 60%, Si: 4%) prices in India were at INR 109,200/t ($1,193/t) exw-Jajpur, as per BigMint’s assessment on 21 January. Deals for around 2,200 t were concluded last week in a wide range of INR 106,000-114,000/t ($1,158-1,245/t) exw.
Low-silicon high-carbon and low-carbon (C:0.1%) ferro chrome prices increased by INR 5,500/t ($60/t) and INR 2,000/t ($22/t) w-o-w to INR 116,500/t ($1,272/t) exw-Jajpur and INR 209,000/t ($2,283/t) exw-Durgapur, respectively.
Market summary (15-21 January 2026)
Supply tightens in domestic market: Some eastern India-based players were not offering material, having fully utilised their environmental clearance (EC) limits. Additionally, another major supplier was learnt to have postponed its ferro chrome auctions, which limited material availability in the eastern Indian merchant market.
China’s spot prices rise: Ferro chrome (HC50%) prices in China increased by RMB 100/t ($14/t) w-o-w to RMB 8,545/t ($1,227/t) exw-Inner Mongolia. The raw material market stayed firm, with chrome ore prices providing solid cost support to ferro chrome producers. Supply from major origins, particularly South Africa, remained constrained due to logistical challenges and environmental regulations. Higher power and energy costs continued to pressure production margins, although producers attempted to offset this through operational efficiencies. Trading activity remained cautious, keeping overall sentiment stable.
On the downstream side, stainless steel demand remained steady, supporting ferro chrome consumption. In the near term, prices are expected to be mixed, with stability in high and medium-carbon grades and slight upside for low-carbon material.
Chinese steelmakers lift tender prices in Feb’26: China’s Tsingshan and Taiyuan Iron and Steel Corporation (TISCO) both raised their February 2026 ferro chrome tender prices by RMB 50/t ($7/t) m-o-m to RMB 8,245/t ($1,184/t and RMB 8,045/t ($1,155/t) DAP, respectively, inclusive of taxes.
Indian ferro chrome prices climb up on firm demand, exports: Following an increase in China’s spot prices, Indian sellers raised offers to around INR 114,000-115,000/t ($1,245-1,256/t) exw. Although buyers remained cautious regarding procurement at these rates, sellers largely held firm, as Indian export prices to China were at these levels. Indian domestic offers were slightly higher than export offers to China, which came to INR 112,000-113,000/t ($1,223-1,234/t) following currency conversion.
Additional support came from steady demand, as SAIL-Salem Steel Plant has floated three tenders since December 2025 to procure a cumulative 12,100 t of ferro chrome, with a significant portion of domestic supply expected to be absorbed there. Alongside this, favourable export realisations have further lifted overall market sentiment.
Prices remained supported despite softer trends seen in OMC’s chrome ore auction held on 19 January 2026, where 74,700 t were sold out of 108,400 t offered. Bids showed mixed trends, with those for most grades declining 1-4% (INR 223-723/t) m-o-m, while higher grades (+52%) rose by 1% (INR 214-325/t). Meanwhile, bids for below 40% grades increased 4-5% (INR 434-534/t).
Stainless steel prices edge higher: Prices of 304-grade stainless steel CRCs rose by INR 2,000/t ($22/t) w-o-w to INR 200,000/t ($2,184/t) exw-Mumbai. Prices were supported by strong global cues, elevated input costs, and a firm US dollar, though buying interest remained cautious amid volatile prices and weak demand. Finished flat prices continued their uptrend ahead of the Chinese New Year, despite muted domestic activity and steady import arrivals, with the BIS compliance norm being extended until 31 March.
In finished longs, prices stayed elevated due to higher raw material costs, with limited trade activity. Globally, repeated price hikes by Indonesian producers further supported sentiment. Overall, prices are expected to remain supported in the near term, though gains may be capped by subdued demand.
Outlook
With sellers holding firm on elevated offers, ferro chrome prices are likely to increase in the days ahead.
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