- Primary lot fetches INR 120,000/t ($1,240/t) exw
- Higher reductant costs, stronger domestic buying support prices
At Vedanta-FACOR’s ferro chrome auction held yesterday, all the offered quantity was sold out. The bigger lot (Cr:57% min, 10-50 mm and 10-70 mm) opened at INR 118,500/t ($1,225/t) and fetched an H1 price of INR 120,000/t ($1,240/t), up INR 1,500/t ($16/t) from the opening price. Meanwhile, bids for the smaller lot of the same grade and size rose by INR 1,200/t ($12/t) from the base price of INR 119,000/t ($1,230/t) to INR 120,200/t ($1,242/t). For these 2 lots, an additional sizing charge of INR 1,500/t ($16/t) was applicable. Meanwhile, the chips and fines lots fetched INR 117,100/t ($1,210/t) and INR 112,975/t ($1,168/t), respectively.
In the spot market, ferro chrome prices have been supported by stronger domestic buying, increased trading activity and elevated input costs, especially of reductants. Sellers are holding offers firm, while stable export prices and currency depreciation are supporting domestic prices despite limited overseas buying.
However, mixed stainless steel demand and weaker buying for long products continue to limit broader price gains. Festive restocking is providing some additional support to market sentiment. Overall, stronger domestic demand and elevated production costs are supporting ferro chrome prices, although uneven downstream demand may limit further gains.
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