- Poor margins prompt production cuts
- INR depreciation supports export tags
Indian high-carbon ferro chrome (HC60%, Si:4%) prices moved up by INR 1,000/t ($12/t) w-o-w compared to the assessment on 5 February. Prices increased following material shortages and a boost in export demand.
As per BigMint’s assessment on 12 February, Indian high-carbon ferro chrome (HC60%, Si:4%) prices stood at INR 98,500/t ($1,134/t) exw-Jajpur. Trades for around 600 t were recorded by BigMint within the price bracket of INR 98,000-99,000/t ($1,128-1,140/t) exw.
Prices of low-silicon high-carbon ferro chrome increased by INR 1,450/t ($17/t) w-o-w to INR 105,000/t ($1,209/t) exw-Jajpur. Meanwhile, low-carbon (C:0.1%) ferro chrome prices too rose by INR 800/t ($9/t) w-o-w to INR 208,000/t ($2,394/t) exw-Durgapur.
Market highlights (6-12 February 2025)
Export inquiries see uptick: Rising inquiries, especially from the export market, motivated sellers to raise offers.
A key player in the market stated, “Prices are rising due to increased export demand, particularly from South Korea, Japan, and Europe. The market is also experiencing a material shortage, as many producers have shifted to manufacturing alternative commodities using their furnaces, further contributing to the price increase.”
Additionally, the depreciation of the INR supported ferro chrome tags, helping exporters gain higher returns. This amplified the upward price momentum.
Overall, these factors combined created a favourable environment for price growth, which is expected to continue in the short term.
Domestic supply tightens: As per reports, three eastern India-based ferro chrome producers have reduced the volume of material offered in the domestic market over the past month, due to negative margins. For the same reason, in the recent past, several producers have been using their furnaces to manufacture alternative commodities. Notably, high-carbon ferro chrome prices fell to a 1.5-year low towards end-January 2025.
Chinese prices rise: Chinese ferro chrome prices rose amid higher tradable values. Prices were at RMB 7,400-7,500/t ($1,012-1,026/t), an increase of RMB 400/t ($55/t) w-o-w. Tradable levels for imported material were at 83-85 cents/lb CIF China. Indicative bids were at around 80 cents/lb, while offers exceeded 90 cents/lb CIF China.
The rebound in Chinese ferro chrome tags was supported by rising South African 40-42% chrome ore prices.
Stainless steel prices fall amid tepid demand: Prices of stainless steel 304-grade hot-rolled coils (HRCs) fell by INR 2,000/t ($23/t) w-o-w to INR 176,000/t ($2,026/t) exw-Mumbai amid muted demand. Despite expectations of a market rebound following the Budget, it did not materialise. Notably, the Indian stainless steel industry has expressed concerns over the newly imposed US tariffs, fearing they could strain trade relations and negatively impact the domestic market. There are apprehensions that diverted shipments from the US could affect supply-demand dynamics and market stability in India.
Outlook
Upward pressure on ferro chrome prices may continue, driven by strong export demand, material shortages, and currency depreciation. However, stainless steel prices may remain under pressure due to weak demand and tariff concerns.
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