India: Ferro chrome market remains stable w-o-w, price hike likely

• Tsingshan raises ferro chrome tender price for Apr’25
• Stainless steel prices remain stable w-o-w

Indian high-carbon ferro chrome (HC60%, Si:4%) prices remained largely stable, with a slight drop of INR 400/t ($5/t) compared to the previous assessment on 26 March.

High-carbon ferro chrome (HC60%, Si:4%) prices were INR 100,100/t ($1,169/t) exw-Jajpur, as per BigMint’s assessment on 3 March. Around 5,000 t trades were recorded by BigMint last week within the price range of INR 99,000-104,500/t ($1,159-1,223/t) exw.

Prices were unchanged w-o-w for low-silicon high-carbon and low-carbon (C:0.1%) ferro chrome at INR 105,250/t ($1,230/t) exw-Jajpur and INR 205,000/t ($2,396/t) exw-Durgapur, respectively.

Market trends (27 March-2 April)

Caution grips market: The majority of market participants adopted a wait-and-see approach last week. Sellers anticipated higher prices following Tsingshan’s April tender price increase. However major stainless steel mills held back due to sufficient in-house stocks. Meanwhile, other buyers were reluctant to make bookings, as their counter bids ranged between INR 98,000-99,000/t ($1,147-1,159/t) exw, falling short of the higher offers quoted by sellers.

In reference to existing market scenario, a seller recently informed BigMint, “Ferro chrome prices are trending upward after Tsingshan’s tender price increased by RMB 600/t ($83/t) m-o-m. Currently, no deals are taking place below INR 100,000/t, and prices are expected to reach around INR 103,000 levels ($1,206/t).”

China’s market scenario: Ferro chrome (HC60%) prices in China went up by RMB 250/t ($34/t) w-o-w to RMB 8,200/t ($1,124/t) exw-Inner Mongolia. Tsingshan’s ferro chrome tender price also increased for April by RMB 600/t ($83/t) m-o- to RMB 7,595/t ($1,045/t) DAP, including taxes, driven by stronger demand and rising imported chrome ore costs.

Increased chrome ore prices added cost pressure on ferro chrome producers, and high stainless steel output provided steady demand support. Additionally, some downstream companies resumed production, increasing inquiries for chrome ore, while miners remained reluctant to sell at lower prices. As stainless steel consumption recovered and production remained high, market fundamentals stayed strong, reinforcing an overall bullish outlook.

Stable stainless steel prices in India: Prices of 304-grade stainless steel hot-rolled coils (HRCs) remained unchanged w-o-w at INR 181,000/t ($2,119/t) exw-Mumbai.

The stainless steel market slowed due to Ramadan and the financial year-end, causing a temporary pause in trading. Market activity is expected to pick up in the coming days, with improved demand in the longs segment.

Outlook

Based on current market sentiments, market activity is expected to stay moderate, with the impact of tender prices likely to be reflected in the short term. However, there is optimism that the start of the new fiscal year will lead to an improvement in both demand and prices.