- Met coke prices rise by INR 3,000/t, supporting ferro chrome
- Indian stainless steel prices strengthen on firm fundamentals
Indian ferro chrome prices remained stable w-o-w at INR 119,000/t ($1,258/t) exw-Jajpur in the assessment week ending 2 September. Market conditions remained largely unchanged, with no major deals concluded during the week. However, higher met coke costs continued to support seller offers.
Market updates (27 August-2 September)
Higher met coke costs support prices: Domestic met coke prices rose by INR 3,000/t ($32/t) w-o-w to INR 40,000/t ($423/t) exw-Jajpur, providing cost support to ferro chrome despite subdued spot activity. The met coke market remains bullish amid tightening availability, improving downstream demand, and higher imported coke and coking coal costs. Rising input costs are likely to keep ferro chrome producers firm on offers in the near term.
China market remains weak: Chinese ferro chrome sentiment remained subdued amid high production, ample availability, and weak stainless steel demand. Softer chrome ore prices, slower inventory drawdowns, and repeated TISCO bid cuts have kept buyers cautious, while elevated 300-series ferro chrome inventories continued to weigh on trading activity.
Indian stainless steel prices strengthen: Indian stainless steel prices strengthened during the week, providing some support to ferro chrome demand. 304 HR coil prices rose by INR 2,000/t ($21/t) w-o-w to INR 222,000/t ($2,347/t) exw-Mumbai, while 316 HR coil prices increased by INR 5,000/t ($53/t) to INR 433,000/t ($4,577/t). Tight scrap availability, elevated alloy costs, and steady domestic enquiries supported prices, although buyers remained cautious at higher levels.
Outlook
Indian ferro chrome prices are expected to remain largely stable in the coming assessment week, with higher met coke costs and firm stainless steel prices providing support. However, limited spot activity, cautious buying, and weak Chinese sentiment could cap upside.
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