- Key buyers hesitant despite lower offers
- Domestic stainless steel market remains subdued
Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices witnessed a drop of 3% w-o-w in comparison to the assessment on 26 November. Prices came down as buyers were expecting further fall resulting in slowdown of trading activities.
As per BigMint’s assessment on 3 December, high-carbon ferro chrome (HC 60%, Si: 4%) prices in India were INR 110,000/t ($1,220/t) exw-Jajpur. Around 2,200 t of deals were reported last week within the price range of INR 110,000-112,000/t ($1,220-1,242/t) exw.
Prices edged down by 1% w-o-w each for low-silicon high-carbon and low-carbon ferro chrome (C:0.1%) as well to INR 115,600/t ($1,282/t) exw-Jajpur and INR 208,200/t ($2,309/t) exw-Durgapur, respectively. For low-carbon ferro chrome (C:0.1%), around 200 t of material was traded last week at around INR 208,000/t ($2,307/t) exw levels.
Market summary (27 November – 3 December)
Sellers ease offers as demand dips: The Indian ferro chrome market witnessed subdued activity over the week as limited inquiries pushed sellers to lower their offers. Despite this a few key buyers remained hesitant to purchase even at INR 109,000/t ($1,209/t) exw expecting further declines. A major stainless steel producer told BigMint, “We currently hold 15-20 days of stock and are not actively seeking material, expecting the market to weaken further before restocking.”
On the supply side, sellers indicated resistance to lowering prices below INR 110,000/t ($1,220/t), citing cost pressures and limited willingness to sell at more discounts. Adding to the bearish tone, Vedanta-FACOR’s 1 December auction reflected softer sentiment, with the larger lot of low-grade material (Cr 56% min, 10-150 mm) settling at an H1 price of INR 108,600/t ($1,205/t), while the smaller lot closed at INR 109,700/t ($1,217/t), resulting in around 2,000 tonnes being booked.
Stagnant stainless steel market: Stainless steel market for 304 grade HRC stayed unchanged w-o-w at INR 180,000/t ($1,997/t) exw-Mumbai. The market remained subdued last week, with soft demand and slow offtake keeping activity muted across both flats and longs. Priceswere unchanged as mills continued limited procurement while import inflows from Southeast Asia added pressure on domestic rates.
Additionally, weakness in the Indian rupee has made imports costlier prompting cautious buying. Overall, the market is expected to remain range-bound in the near term, with subdued demand and currency fluctuations limiting aggressive procurement by domestic players.
Stable Chinese market: Ferro chrome (HC60%) prices in China were stable w-o-w at RMB 8,300/t ($1,175/t) exw-Inner Mongolia. Chrome ore supply from major regions like South Africa remained stable, with minimal disruption from seasonal factors and steady port inventories.
Downstream, stainless steel demand stayed strong, with firm requirements for low-carbon ferro chrome from high-end stainless steel production and stable medium-carbon ferro chrome demand in specialty alloys. Environmental regulations limited some output but purchasing interest remained steady. Ferro chrome prices are expected to remain stable in the short term barring major demand or supply shifts.
Outlook
Given the current market scenario, ferro chrome prices might further decline in the days ahead.
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