- FACOR’s auction fetches INR 120,200/t ($1,312/t) exw
- South Africa proposes lower power tariff for ferro chrome
Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices went down by INR 2,000/t ($22/t) in comparison to the assessment on 25 February. Prices came down as bids were on the lower side at Vedanta-FACOR’s ferro chrome auction and buying inquiries were also limited last week.
As per BigMint’s assessment on 3 March, high-carbon ferro chrome (HC 60%, Si: 4%) prices in India were INR 121,000/t ($1,320/t) exw-Jajpur. Around 2,400 t of deals were concluded last week in the price range of INR 120,000-125,000/t ($1,310-1,364/t) exw.
Low-silicon high-carbon ferro chrome (HC 60%, Si: 2%) prices too declined by INR 1,200/t ($13/t) w-o-w to INR 127,000/t ($1,386/t) exw-Jajpur. However, for low-carbon ferro chrome (C: 0.1%), prices rose by INR 1,500/t ($16/t) w-o-w to INR 224,000/t ($2,444/t) exw-Durgapur, respectively.
Market recap (26 February – 3 March)
Cautious buying weighs on prices: At the Vedanta-FACOR’s ferro chrome auction on 27 February, prices saw a marginal increase from the base levels. The larger lot (Cr: 57% min, 10-150 mm) achieved an H1 price of INR 120,200/t ($1,312/t) exw, rising by INR 200/t from the base price. The smaller lot of the same grade and size settled slightly higher at INR 120,800/t ($1,318/t) exw, up by INR 300/t ($3/t) over the base price.
Market sentiment then weakened post the auction as buyers anticipated further price corrections. Limited buying inquiries were also observed in the spot market, which added pressure on prices. A key stainless steel producer was recently quoted as saying, “Demand for stainless steel is very weak, hence we’re not actively buying ferro chrome. In the near term, we expect prices to fall below INR 120,000/t ($1,310/t) exw levels.”
Indian export offers too stayed steady w-o-w across key markets of China, Japan and South Korea at 98 cents/lb, 107 cents/lb and 105 cents/lb CNF, respectively.
Global market updates: In China, ferro chrome (HC60%) prices were steady w-o-w at RMB 8,900/t ($1,290/t) exw-Inner Mongolia. Along with Tsingshan, other major steel mills also kept prices unchanged, prompting a wait-and-see approach among participants. Although chrome ore prices stayed firm, ferro chrome supply remained relatively sufficient, limiting producers’ ability to push prices higher. Downstream stainless steel mills continued cautious procurement, mostly buying based on immediate requirements. Overall trading activity stayed moderate, with prices largely steady as supportive cost factors balanced weaker demand and ample supply conditions in the market.
In a recent development in South Africa, Eskom has proposed reducing electricity tariffs for ferro chrome producers to 62 c/kWh, down from the interim 87.74 c/kWh introduced in January 2026. The move, backed by the Energy Minister, aims to support struggling producers and protect jobs, pending approval from the National Energy Regulator of South Africa.
Meanwhile, the ongoing Iran-Israel conflict could impact shipments to Europe and the US for Indian exporters, according to market sources. With South African production likely to resume, some volumes may be redirected to the South Asian market, potentially increasing competition for Indian suppliers.
India’s stainless steel market: The demand for finished stainless steel remained moderate during the week, primarily due to ongoing festivities and prevailing geopolitical uncertainties. At the same time, rising input costs continued to put pressure on producers, as Indian stainless steel manufacturers remain largely dependent on imported raw materials. Higher freight rates and elevated raw material prices intensified discussions around price increases. Market sources also indicate that a major stainless steel producer has raised prices for 304 and 316 grade coils by INR 2,000/t ($22/t) and INR 4,000/t ($44/t), respectively.
Overall, the stainless steel market remained largely range-bound, supported by stable domestic demand, while prices stayed firm amid the continued rise in raw material input costs.
Outlook
With limited buying and sufficient domestic supplies, ferro chrome prices may witness further decline in the days ahead.
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