- Base prices edge lower by 2% at OMC’s auction
- Stainless steel prices rise on supply disruptions
Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices dropped INR 1,800/t ($19/t) in comparison to the assessment on 11 March. Prices fell due to bid-offers gaps and decreasing bids in OMC’s chrome ore auction.
As per BigMint’s assessment on 18 March, high-carbon ferro chrome (HC 60%, Si: 4%) prices in India were INR 119,000/t ($1,276/t) exw. Around 3,100 t of deals were reported last week within a price bracket of INR 118,000-120,000/t ($1,265-1,286/t) exw.
Prices fell for low-silicon high-carbon ferro chrome (HC 60%, Si: 2%) as well by INR 1,300/t ($14/t) w-o-w to INR 124,000/t ($1,329/t) exw-Jajpur. Approximately 500 t of trade was finalised at similar price levels. Meanwhile, low-carbon ferro chrome (C: 0.1%) prices held steady w-o-w at INR 226,000/t ($2,422/t) exw-Durgapur.
Market highlights (12-18 March)
Auctions and low demand exert pressure: The Indian ferro chrome market remained under pressure due to weak buying sentiment and price adjustments. OMC scheduled a chrome ore auction for 104,300 t today, with the offered volume reduced by 10,300 t m-o-m. Base prices across grades were lowered by 2% (INR 228–595/t), prompting most sellers to stay out of the market last week as offers are typically revised following auction outcomes. Limited inquiries further weighed on market activity, forcing sellers to reduce offer levels, with transactions concluded even at INR 118,000/t ($1,265/t) exw.
A subdued trend was also observed in Vedanta-FACOR’s ferro chrome auction yesterday, reflecting cautious buyer participation. As per sources, ferro chrome (Cr:56% min, 10-150 mm) bids were received in the range of INR 117,600-118,300/t ($1,261-1,268/t) exw, highlighting continued pricing pressure across product segments. However, official confirmation of the result is yet to be received at the time of reporting.
Cost pressures drive stainless steel prices: Stainless steel prices for 304 grade CRC edged up by INR 5,000/t ($54/t) w-o-w to INR 220,000/t ($2,358/t) exw-Mumbai amid supply disruptions and rising logistics costs linked to ongoing geopolitical tensions. However, domestic demand stayed weak as liquidity constraints continued across the supply chain, resulting in mostly need-based purchases despite steady inquiries.
A leading domestic producer announced its second price hike this month, raising 304/304L coil prices by INR 5,000/t ($54/t) , 316/316L by INR 10,000/t ($107/t) , and 200 and 400 series by INR 3,000/t ($32/t) due to higher costs and supply concerns. Trading activity remained subdued due to delayed imports and shipment uncertainties.
Globally, Indonesia’s Tsingshan increased export prices, adding cost pressure. In the longs segment, prices rose modestly but buying interest stayed limited. Export activity remained quiet, with mills maintaining a cautious outlook due to ongoing global uncertainty.
Indian ferro chrome export offers rise w-o-w: Indian ferro chrome export offers to China, Japan and South Korea edged up to 100 cents/lb, 106 cents/lb and 104 cents/lb, respectively. As per sources, some bookings were done at these levels and rupee depreciation against US dollar helped upward movement in prices.
China’s market trends: Ferro chrome (HC60%) prices in China stayed unchanged w-o-w at RMB 9,000/t ($1,309/t) exw-Inner Mongolia. The chrome ore market remained firm, supported by slightly higher spot prices and elevated quotations, while overseas suppliers maintained strong offer levels amid cautious selling. Although port inventories stayed relatively high, supply pressure eased. Ferro chrome producers continued operating at high utilization rates, sustaining steady ore demand, while rising raw material costs increased smelting expenses and squeezed producer margins.
Downstream stainless steel demand remained uneven, with procurement activity weak due to maintenance shutdowns and slow recovery in traditional sectors affected by sluggish real estate and infrastructure activity. However, strong demand from high-end manufacturing, including aerospace and data centres, offered support. In the near term, ferro chrome prices are expected to stay stable amid tight supply and cautious demand.
Outlook
Prices seem to be under pressure as seen in yesterday’s ferro chrome auction by Vedanta-FACOR and OMC’s auction today. So further drop in prices is likely in coming days.
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