- Bids fall INR 1,550/t ($16/t) m-o-m
- China’s July ferro chrome production up 5% m-o-m
At Vedanta-FACOR’s ferro chrome auction held today, the entire offered quantity was sold out. The lumps lot (Cr: 57% min, 10-150 mm) fetched an H1 price of INR 119,850/t ($1,257/t) exw, up INR 2,100/t ($22/t) from the base price of INR 117,750/t ($1,235/t).
However, the H1 price was INR 1,550/t ($16/t) lower than the previous auction held on 15 July, when the Cr: 58% min lumps lot fetched INR 121,400/t ($1,273/t) exw. Sources cited that due to fewer lots offered, bids fetched premium over set base price.
The lower auction realization was mainly attributed to weak export demand, higher freight costs and reduced price realizations, particularly in China. China’s high-carbon ferro chrome production increased for the third consecutive month in July, reaching a record 997,500 t, up 4.8% m-o-m, according to Mysteel. Rising Chinese production has increased domestic availability and reduced the need for imported ferro chrome, leading to fewer inquiries from overseas buyers.
Meanwhile, selling pressure remained evident in the Indian market, with producers and traders looking to liquidate available material amid subdued demand. Market participants noted that the absence of a major buyer, who typically purchases around 3,000-4,000 t per month, weighed on overall buying interest. With lower demand in the market, competition for the auction material remained limited, resulting in subdued bidding and a lower H1 price compared with the previous auction.
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