- Bids rise for higher grades at OMC’s chrome ore auction
- Oct’26 tender prices drop RMB 200/t ($30/t) in China
Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices stood largely steady, going down slightly by INR 400/t ($4/t) w-o-w to INR 118,600/t ($1,237/t) exw-Jajpur. Regular trades in the market helped to keep price steady over last week.
A total of around 3,600 t of trades were reported to BigMint last week in the price bracket of INR 117,500-120,000/t ($1,225-1,251/t) exw. For low-silicon ferro chrome, prices fell by INR 1,000/t ($10/t) w-o-w to INR 123,100/t ($1,284/t) exw-Jajpur. Meanwhile, low-phos ferro chrome prices rose by INR 900/t ($9/t) w-o-w to INR 130,500/t ($1,361/t) exw-Jajpur.
Market summary (17-23 September)
Spot trades keep market firm: The key highlight in the ferro chrome market last week was OMC’s chrome ore auction held on 19 September, where 56,600 t was booked out of the 100,000 t offered. The auction received a mixed response, with stronger buyer interest for higher-grade ore, while bidding remained subdued for lower-grade material. Compared with OMC’s August auction, final prices for some grades increased by 0.12-11% (INR 28-2,728/t), while others declined by 2-14% (INR 416-2,759/t). However, premiums over base prices increased across all grades by 0.4-17% (INR 100-4,400/t).
Higher chrome ore prices, along with elevated coke costs, kept input costs firm, limiting scope for downward revisions in ferro chrome offers. Accordingly, producer offers remained largely unchanged w-o-w. Regular spot trades in the domestic market also provided support, keeping ferro chrome prices firm during the week.
Tender prices drop in China: China’s leading stainless steel producers Tsingshan and TISCO reduced their October 2026 high-carbon ferro chrome tender prices by RMB 200/t ($30/t) m-o-m to RMB 7,795/t ($1,161/t) and RMB 7,645/t ($1,139/t), respectively. The cuts reflected subdued market sentiment amid ample supply, weak overseas demand and cautious stainless steel buying. Rising 300-series stainless steel inventories further weighed on procurement. However, widening smelter losses triggered production cuts, maintenance stoppages and lower operating rates, gradually tightening supply.
Stainless prices stable on firm costs: Indian stainless steel prices for 304 grade HRC were steady w-o-w at INR 222,000/t ($2,315/t) exw-Mumbai. Despite stability in prices, buying sentiment stayed cautious amid moderate spot activity and volatility in nickel prices. Buyers largely focused on immediate requirements, limiting inventory accumulation due to uncertainty over raw-material and freight costs. Nevertheless, elevated scrap and alloy costs continued to support sellers’ price expectations, while tight scrap availability provided further firmness to the longs segment.
Export sentiment remained subdued, with elevated container freight rates and limited overseas buyer interest weighing on trade activity. Market participants expect domestic buying to gradually improve as downstream consumers begin replenishing inventories ahead of Diwali, although cautious procurement is likely to persist. Globally, Tsingshan’s higher Asia-bound offers indicated some cost-driven price support despite weak demand and elevated inventories, suggesting limited downside to regional stainless steel prices.
Outlook
Indian ferro chrome prices are likely to remain stable in the coming week, supported by chrome ore and coke costs, steady spot demand and tightening supply. However, subdued stainless steel buying, cautious procurement and weaker Chinese tender prices could limit upward movement. Diwali-related restocking may provide some further support.
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