- Vedanta-FACOR’s recent auction fetches premium
- Nippon Steel cuts Q4 tender price by 2.4%
Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices edged up by INR 800/t ($8/t) w-o-w to INR 120,000/t ($1,262/t) exw-Jajpur. Regular trades in the market along with positive outcome at recent Vedanta-FACOR’s ferro chrome auction were the key drivers of price increase.
Close to around 4,800 t of deals were reported to BigMint last week within the price bracket of INR 118,500-123,000/t ($1,247-1,294/t) exw-Jajpur.
Prices edged up for low-silicon and low-carbon ferro chrome as well by INR 400/t ($4/t) and INR 600/t ($6/t) w-o-w to INR 124,000/t ($1,304/t) exw-Jajpur and INR 239,000/t ($2,514/t) exw-Durgapur, respectively. Meanwhile, for low-phos variant, it held steady w-o-w at INR 131,000/t ($1,378/t) exw-Jajpur.
Market recap (8-14 October)
Prices gain momentum: Indian ferro chrome market sentiment improved during the week, supported by firm bidding in Vedanta-FACOR’s latest auction on 9 October. The larger lot of Cr:57% min, 10-50 mm and 10-70 mm opened at INR 118,500/t ($1,247/t) and fetched an H1 price of INR 120,000/t ($1,262/t), up INR 1,500/t ($16/t) from the base price. Meanwhile, the smaller lot of the same grade and size secured INR 120,200/t ($1,264/t), marking an increase of INR 1,200/t ($13/t) over its opening price of INR 119,000/t ($1,252/t). Both lots attracted an additional sizing charge of INR 1,500/t ($16/t).
In the spot market, regular trading activity indicated sustained buying interest, while sellers maintained firm offers amid reported tightness in coke supplies.
Indian stainless steel market shows mixed trends: Stainless steel prices for 304 grade HRC were unchanged w-o-w at INR 218,000/t ($2,293/t) exw-Mumbai. Overall, India’s stainless steel market witnessed mixed trends during the week ended 14 October. Flat products saw decent but selective demand ahead of Diwali, while liquidity constraints and shortages in certain grades limited procurement.
In the longs segment, weak downstream demand kept buying interest subdued. A leading domestic producer raised 304 and 316 HR and CR product prices, although buyers faced challenges absorbing the increases.
Globally, Taiwan’s stainless steel import prices rose for the seventh consecutive month in August, while imports declined amid higher costs. Anti-dumping investigations in Taiwan and Vietnam may also influence regional trade flows. Going forward, festive demand and alloy costs may support prices, but liquidity constraints and weak consumption could limit gains.
Global market weakens: China’s ferro chrome market remained under pressure as leading steel mills lowered procurement bids, weakening market sentiment. Reduced stainless steel output, cautious buying and high inventories continued to weigh on demand, keeping spot transactions sluggish. On the raw material front, chrome ore prices softened amid slower port inventory drawdowns and limited support from overseas markets. Declining coking coal prices further weakened cost support for ferro chrome producers. However, elevated smelting costs and potential production cuts may limit further price declines.
Also, Japan’s Nippon Steel reduced its Q4 2026 (October-December) high-carbon ferro chrome contract price by 2.4% q-o-q to 160 cents/lb from 164 cents/lb, marking a second consecutive quarterly decline. The agreement with South African producers reflects weak demand amid sluggish stainless steel production in Europe and China. Other Japanese stainless steel producers are expected to follow similar price adjustments.
Outlook
Indian ferro chrome prices are likely to remain firm in the coming week, supported by strong auction bids, steady spot demand and tight coke supplies. However, mixed stainless steel demand, liquidity constraints and weak downstream consumption may limit further gains. Globally, lower Chinese steel mill bids, softer raw material costs and declining Japanese contract prices could weigh on market sentiment.
Leave a Reply