- Bids increase at OMC’s and FACOR’s auctions
- Weak stainless demand keeps buyers cautious
Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices stayed unchanged w-o-w at INR 119,000/t ($1,236/t) exw-Jajpur, as per BigMint’s assessment on 20 May. Prices were steady as market participants stayed on the sidelines during the assessment period, waiting for the outcomes of auctions from the Odisha Mining Corporation (OMC) and Vedanta-FACOR.
Deals for around 1,500 t were concluded last week within the price range of INR 116,000-121,500/t ($1,204-1,261/t) exw. Low-silicon high-carbon ferro chrome prices edged up by INR 400/t ($4/t) w-o-w to INR 124,000/t ($1,287/t) exw-Jajpur. Meanwhile, low-carbon ferro chrome (C: 0.1%) prices were unchanged w-o-w at INR 240,000/t ($2,492/t) exw-Durgapur.
Market summary (14-20 May)
Auctions dominate market pulse: Major domestic auctions kept the market largely on the sidelines, as participants awaited the outcomes to know upcoming price trends.
At Odisha Mining Corporation’s (OMC) chrome ore auction held on 20 May, around 96,400 t of material were booked against the 131,800 t offered. Bids increased slightly across all grades by up to 6% (INR 10-1,545/t) m-o-m, while premiums over base prices also rose by up to 6% (INR 100-1,500/t). The improvement in bids was likely driven by restocking activity ahead of the monsoon season, when chrome ore supply generally tightens.
At Vedanta-FACOR’s ferro chrome auction conducted on the same day, the larger ferro chrome lumps lot (Cr:57% min, 10-150 mm) achieved a final price of INR 119,700/t ($1,243/t) exw, up by INR 1,900/t ($20/t) from the base price of INR 117,800/t ($1,223/t). Compared with the previous 24 April auction for Cr:56% grade material, the price of the larger lot rose by INR 2,900/t ($30/t).
Meanwhile, at SAIL Salem Steel Plant’s reverse auction held on 13 May, around 4,300 t of ferro chrome material (Cr:57-63%, 10-70 mm) were booked at an H1 price of nearly INR 135,500/t ($1,407/t) FOR, excluding taxes.
Weak demand limits stainless steel recovery: Prices of stainless steel 304 grade hot-rolled coils (HRCs) inched down by INR 2,000/t ($21/t) w-o-w to INR 225,000/t ($2,336/t) exw-Mumbai. The market showed mixed trends as rising nickel and ferro molybdenum prices supported market sentiment, but buying activity remained mostly need-based due to high costs and raw material volatility. Globally, Chinese stainless steel demand remained weak, but higher nickel and alloy costs continued to support overall stainless steel prices.
India’s stainless steel market is likely to stay firm in the near term, supported by high alloy costs, rupee depreciation, and reduced import competitiveness. However, future price movements will largely depend on demand strength and global stainless steel trade trends.
Chinese market stays cautious: China’s ferro chrome market remained weak but mostly stable due to mixed market factors. Firm chrome ore prices and high freight costs continued to support the market, while weak stainless steel demand and expectations of higher ferro chrome supply kept sentiment under pressure.
Market participants remained cautious as production in China is expected to rise, and imports from South Africa and Zimbabwe may increase. Stainless steel mills continued buying only for immediate needs and relied mainly on existing inventories, resulting in slow transactions. High port inventories also limited price growth.
Outlook
Given the positive response at recently concluded domestic auctions, sellers are likely to revise their offers upward in the coming week. Thus, BigMint expects ferro chrome prices to rise in the next few days.
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