- Buyer resistance pulls offers lower
- Need-based procurement limits market trading activity
India’s ferro titanium market weakened during the week ended August 6, with prices declining by INR 11,000/t ($116/t) w-o-w to INR 360,000/t ($3,780/t) exw-India. Market sentiment remained subdued as higher offer levels of up to INR 380,000/t ($3,991/t) exw failed to gain acceptance. Buyers largely resisted elevated quotations and restricted purchases to immediate requirements, resulting in limited spot transactions. Comfortable material availability further pressured prices, prompting suppliers to align offers closer to prevailing market levels to conclude deals.
Stainless steel demand remains supportive
Despite the correction in ferro titanium prices, the downstream stainless steel market remained firm. Rising alloy costs, tight raw material availability, and improving buying activity ahead of the festive season supported stainless steel prices. However, this strength translated into only need-based ferro titanium procurement, as most stainless steel producers maintained adequate inventories and avoided aggressive restocking amid volatile alloy markets.
China market stable on balanced fundamentals
China’s ferro titanium market remained largely stable during the week, with both high-grade and low-grade products witnessing limited price movement. Production levels across major manufacturing regions remained normal, while high-grade producers continued to prioritise long-term contracts. Raw material titanium concentrate supply remained ample, keeping cost support weak. On the demand side, stainless steel and specialty steel mills largely purchased on a need basis despite the commencement of monthly tenders, resulting in muted trading activity and a cautious market sentiment.
Outlook
India’s ferro titanium market is expected to remain under mild pressure in the coming week as buyers continue to procure only for immediate requirements. However, steady stainless steel production and festive-season demand may help stabilise prices, while developments in China’s ferro titanium market and titanium raw material prices will remain key indicators for market direction.
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