India: Ferro chrome prices firm w-o-w amid moderate demand

Indian ferro chrome prices were firm w-o-w with a marginal uptrend seen amid moderate demand. Meanwhile, producers started offering a bit higher post- the good response in Vedanta’s ferro chrome auction held on 16 June 2022.

According to SteelMint’s assessment on 23 June 2022, market participants concluded deals of around 1,500 tonnes at a price range of INR 105,000-110,000/t exw-Jajpur.

Factors behind steady prices:

• Soft domestic demand: Domestic demand remained soft, as buyers were anticipating a correction in the near future. A high inventory level and weak demand for stainless steel have also curtailed production of the latter by 20-25%. Additionally, some buyers were focusing on Vedanta’s auction on 23 June. This further reduced demand. However, some buyers negotiated hard and booked only as much as possible in order to avoid affecting their production.
• Slow export demand: In India’s export market, few enquiries were received since buyers were awaiting the announcement of new tender prices by major Chinese mills. Chinese buyers were more interested in domestic material for immediate delivery. This led to stable export offers.
• Stainless steel prices down: Stainless steel prices fell in line with the decline in nickel prices. LME nickel prices were down 3.5% w-o-w to $24,400t. In addition, weak demand also affected stainless steel prices. Meanwhile, stainless steel (304 grade, HRC) prices were assessed on 21 June 2022 at INR 238,000/t ex-Mumbai, down by INR 5,000/t w-o-w. This resulted in steady ferro chrome prices amid moderate demand due to buyers’ reluctance to order large quantities.

China market overview
China’s ferro chrome prices remained unchanged w-o-w at RMB 9,650/t ($1,439/t) exw-Inner Mongolia. Most of the sellers held their offers firm and were waiting for the new round of purchase prices of steel mills. Market participants expected that Chinese tender prices would not increase due to weak demand for July delivery.

Outlook
Ferro chrome demand is weak. Buyers are waiting on the sidelines in anticipation of a price correction in the near term, sources informed.