- FACOR 5 Apr auction to shed more light on prices
- South African chrome ore prices on the rise
Prices of Indian high-carbon ferro chrome (HC60%, Si:4%) decreased by INR 1,000/t ($12/t) w-o-w as compared to the previous assessment on 27 March. Prices fell to their lowest point in three months as bids continued to be lower than the offers. Prices touched INR 112,200/t ($1,344/t) exw-Jajpur on 3 April, according to BigMint’s assessment. Last week, 1,800 t of trades in the INR 112,000-114,500/t ($1,342-1,372/t) price range were completed.
Similarly, prices of high-carbon low-silicon ferro chrome (HC60%, Si:2%) dropped INR 1,300/t ($16/t) w-o-w, reaching INR 118,700/t ($1,422/t) exw-Jajpur on 4 April.
Weekly market round-up
Bid-offer disparities persist: The bid-offer discrepancies that had been hovering in the market for the past few weeks persisted last week as well. As a result, the domestic market’s prices have not yet stabilized.
A few days earlier, BigMint was reportedly told by a major producer of stainless steel that, although it had purchased material at INR 110,000/t ($1,318/t), it was no longer a buyer at that level and will purchase further only if prices come down.
China’s market dynamics: The price of ferro chrome (HC60%) in China saw little change w-o-w, falling by RMB 100/t ($14/t) to RMB 9,050/t ($1,251/t) exw-Inner Mongolia. Additionally, reports indicated that prices might not drop further given that South Africa’s chrome ore prices had increased as a result of rising electricity rates.
LME push to India’s prices: Prices of stainless steel of 304 grade increased by INR 2,000/t ($24/t) w-o-w to touch INR 175,000/t ($2,097/t) exw-Mumbai. Although the LME nickel price hike caused prices to rise, the market remained volatile and a cautious strategy was adopted.
Outlook
BigMint expects prices to remain range-bound in the near term, with minor adjustments. The outcome of Vedanta-FACOR’s ferro chrome auction on 5 April will further influence the market trajectory.