- Stainless buyers cautious amid high inventory levels
- OMC auction outcome keeps market sentiment stable
Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices stayed steady as compared to the assessment on 15 April. Prices were stable as market participation from both sellers and buyers were limited last week resulting in steady market conditions.
High-carbon ferro chrome (HC 60%, Si: 4%) prices in India were INR 117,500/t ($1,249/t) exw-Jajpur, as per BigMint’s assessment on 15 April. Around 1,100 t of trades were concluded last week within the price range of INR 115,000-119,000/t ($1,223-1,265/t) exw.
Low-silicon high-carbon ferro chrome (HC 60%, Si: 2%) prices inched down by INR 600/t ($6/t) w-o-w to INR 122,000/t ($1,297/t) exw-Jajpur. Deal of around 800 t was reported for it at INR 121,000-121,500/t ($1,286-1,292/t) exw levels. Low-carbon ferro chrome (C: 0.1%) prices stayed unchanged w-o-w at INR 237,000/t ($2,520/t) exw-Durgapur, supported by steady operating costs.
Market highlights (16-22 April 2025)
Prices flat amid cautious market sentiment: Domestic ferro chrome market remained largely steady last week, even as supply-side slightly tightened. Three primary sellers stayed away from domestic offers, focusing instead on export commitments, which limited fresh availability in the local market. However, prices did not witness any upward movement, as key stainless steel mills had already procured sufficient material earlier in the month at comparatively lower rates, reducing immediate buying interest.
Additionally, the outcome of the OMC’s chrome ore auction also influenced sentiment. Around 70,900 t were sold out of the 124,400 t offered, with bids declining by 0.4-7% m-o- across grades. Despite this, bid premiums over base prices remained largely stable, supporting overall price stability.
Stainless steel market firm globally, weak domestically: India’s finished stainless steel market stayed under pressure last week, as repeated price hikes reduced buying interest and kept volumes low. Even though global markets were firm due to higher nickel prices and rising energy costs, domestic buyers remained cautious and purchased only as needed.
In the flats segment, activity was slow, with buyers resisting higher prices despite mills announcing increases across key grades.
In the longs segment, prices were supported by higher raw material costs, though trading remained limited. Overall, the market may stay firm, but weak demand is likely to keep volumes under pressure.
China’s market update: Domestic Chinese prices stood firm as the market balanced high costs with weak demand. Although chrome ore spot prices saw a slight correction, they were still at elevated levels, and firm South African ore futures continue to support production costs. This made producers reluctant to lower offers. Meanwhile, stainless steel mills had sufficient inventories and were purchasing only as needed, keeping demand subdued. Trading activity remained slow, with participants adopting a cautious approach. In the near term, ferro chrome prices are expected to move in a narrow range, supported by costs but limited by weak buying interest.
Outlook
Based on existing market conditions, ferro chrome prices in the coming days are likely to hold steady with some slight variations.
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