- Bids fall INR 2,250/t ($24/t) against previous auction
- Weak China market, softer chrome ore sentiment weigh on prices
At Vedanta-FACOR’s ferro chrome auction held yesterday, the entire offered quantity was sold out. The lumps lot (Cr: 57% min, 10-150 mm) fetched an H1 price of INR 117,600/t ($1,233/t) exw, up by INR 600/t ($6/t) from the base price of INR 117,000/t ($1,226/t).
The H1 price for the lumps was INR 2,250/t ($24/t) lower than the previous auction on 12 August, when the same Cr: 57% min lumps lot fetched INR 119,850/t ($1,257/t) exw. The smaller lumps lot fetched INR 117,800/t ($1,237/t) exw, while chips (Cr:54% min, 10-20 mm) went for INR 116,100/t ($1,219/t) exw.
Indian ferro chrome prices have declined by around INR 3,000/t ($31/t) in August amid cautious buying, limited spot activity and wider bid-offer gaps. Although regular trades have remained largely stable, buyers continue to be selective amid subdued downstream demand. OMC’s latest chrome ore auction also saw bids decline by 1-2% for most grades, pointing to some softening in raw material sentiment.
The weaker Chinese market is adding further pressure. Ferro chrome production reached nearly 1 mnt in July, as per Mysteel Global, outpacing demand and leaving the market in surplus. Weak stainless steel demand and ample availability have kept mills cautious about procurement, prompting Tsingshan and TISCO to lower September tender prices by RMB 100/t ($15/t) m-o-m.
Lower chrome ore prices could provide some margin relief to Indian ferro chrome producers. However, subdued stainless steel demand and comfortable availability continue to weigh on the market. With domestic buying remaining cautious and the Chinese market under pressure, the lower FACOR auction price points to continued pressure on near-term ferro chrome market sentiments.
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