- H1 price at FACOR’s FeCr auction rises INR 550/t
- Stainless steel tags inch up, demand yet to pick up
Indian high-carbon ferro chrome (HC60%, Si:4%) prices inched up by INR 900/tonne (t) ($10/t) as compared to the previous assessment on 19 February. Prices rose following two key domestic auctions – for chrome ore from the Odisha Mining Corporation (OMC) and ferro chrome from Vedanta-FACOR.
According to BigMint’s assessment on 26 February, Indian high-carbon ferro chrome (HC60%, Si:4%) prices were at INR 100,400/t ($1,151/t) exw-Jajpur. Trades for around 2,800 t were finalised last week, within the price bracket of INR 99,500-102,000/t ($1,141-1,170/t) exw.
However, low-silicon high-carbon and low-carbon (C:0.1%) ferro chrome prices fell by INR 1,400/t (16/t) and INR 3,000/t ($34/t) w-o-w to INR 106,000/t ($1,216/t) exw-Jajpur and INR 205,000/t ($2,351/t) exw-Durgapur, respectively.
Market summary (20-26 February)
Auction results shape market trends: OMC’s chrome ore and Vedanta-FACOR’s ferro chrome auctions played a pivotal role in shaping domestic ferro chrome prices.
At OMC’s chrome ore auction on 19 February, 37,100 t were booked out of the 84,500 t offered. Bids went up for some grades by 6-27% (INR 943-5,378/t), while for some, they decreased by 12-18% (INR 2,814-4,890/t) in comparison to the previous month’s auction. Premiums also went up by 5-42% (INR 800-8,900/t) over the base price.
Additionally, OMC also held a ferro chrome auction on the same day, in which the bigger lot of Cr:60-64%, 10-100 mm was booked at INR 95,700/t ($1,097/t) exw.
Vedanta-FACOR’s ferro chrome auction was held on 24 February. The larger lot of 10-150 mm received an H1 price of INR 99,750/t ($1,143/t) exw, up by INR 550/t ($6/t) against the previous auction on 6 January.
Post these auctions, sellers aligned their offers accordingly, and tradable levels remained mostly within INR 100,000-101,000/t ($1,146-1,157/t) exw. It is yet to be seen whether buyers will accept higher offers.
Commenting on this, a seller recently informed BigMint, “We are offering material at INR 103,000/t ($1,181/t), but buyers are countering with bids at INR 100,000-102,000/t ($1,146-1,169/t).”
Stainless steel segment remains stagnant: Prices of 304-grade stainless steel hot-rolled coils (HRCs) inched up by INR 1,000/t ($11/t) w-o-w to INR 177,000/t ($2,029/t) exw-Mumbai. Demand did not improve substantially, and the slight hike occurred mainly due to a w-o-w rise in LME nickel prices. In the coming days, prices are expected to stay within the current range, with buying activities at low-to-moderate levels.
Chinese FeCr prices remain stable: Ferro chrome (HC60%) prices in China were unchanged w-o-w at RMB 7,600/t ($1,047/t) exw-Inner Mongolia. Steel mills’ production, particularly in southern China, was lower than expected, which resulted in a decline in ferro chrome demand.
Chrome ore prices were also stable, as its supply normalised. Market participants awaited the revised tender prices for March, with most expecting them to increase m-o-m.
Outlook
Buyers’ acceptance towards elevated offers remains limited, so in the upcoming days, prices may stay range-bound with some variations.
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