- Aggressive auction bids strengthen price outlook
- Global cues and dollar strength support stainless steel prices
High-carbon ferro chrome (HC 60%, Si: 4%) prices in India increased by INR 7,400/t ($81/t) as compared to the last assessment on 23 January. Prices surged following higher bids at recent auctions of OMC and Vedanta-FACOR. Prices have risen to a three-month highs to levels last seen in end October’25.
As per BigMint’s assessment on 30 January, high-carbon ferro chrome (HC 60%, Si: 4%) prices in India stood at INR 120,000/t ($1,306/t) exw-Jajpur. Around 6,000 t of deals were concluded last week in the price bracket of INR 111,000-122,000/t ($1,207-1,328/t) exw.
Prices went up for low-carbon (C:0.1%) ferro chrome as well by INR 1,000/t ($11/t) w-o-w to INR 210,000/t ($2,283/t) exw-Durgapur.
Market recap (22-29 January)
Auction premiums boost market sentiments: Recent ferro chrome auctions in India have reinforced bullish sentiments in the market. At OMC’s ferro chrome auction held on 27 January, around 2,950 t out of the 3,000 t offered was sold, indicating strong buying interest. The larger 1,500 t lot (Cr: 60-64%, 10-100 mm) was booked at INR 115,800/t ($1,259/t) exw, nearly INR 11,300/t ($123/t) above the base price.
At Vedanta-FACOR’s auction on 28 January, higher premiums were achieved reflecting aggressive buyer participation. The larger lot (Cr: 56% min, 10-150 mm) achieved an H1 price of INR 121,500/t ($1,321/t) exw, up INR 7,500/t ($82/t) from base price, while the smaller lot closed at INR 121,700/t ($1,323/t) exw, higher by INR 7,200/t ($78/t) than the base price.
Strong bids in both auctions, coupled with increasing export bookings from key sellers, have significantly strengthened market sentiment. Tight supply in the domestic market, along with firm demand from export destinations like China, has been pushing Indian ferro chrome offers upward.
Supply issues in domestic market: The ferro chrome market recently witnessed tight supply conditions due to multiple production-side constraints. One major supplier, with an installed monthly capacity of about 35,000 t, was operating at nearly 50% utilization as it focused on export commitments over domestic supply. As per sources, another key plant, which usually produces around 10,000 t of ferro chrome per month, has remained shut, further limiting availability. Several producers were already booked against tender orders, while some plants refrained from offering material due to shortages of higher-grade chrome ore. This overall supply crunch supported higher premiums in recent ferro chrome auctions.
Prices stable in Chinese market: Ferro chrome (HC60%) prices in China were unchanged w-o-w at RMB 8,800/t ($1,265/t) exw-Inner Mongolia. Chrome ore market sentiment too remained firm, supported by tight availability in key producing regions like South Africa, which encouraged traders to hold prices. Environmental restrictions further limited mining and logistics, tightening supply and increasing input costs for ferro chrome producers. While this created margin pressure, producers continued operations through production optimization.
On the demand side, the stainless steel sector maintained stable output, backed by moderate winter stocking. Most mills depended on long-term contracts, keeping spot activity limited. Although weak macroeconomic conditions weighed on demand, essential consumption helped maintain market balance.
End-user market trends: Stainless steel prices for 304 grade CRC inched up by INR 1,000/t ($11/t) w-o-w to INR 201,000/t ($2,186/t) exw-Mumbai. Market was supported by rising global prices, higher raw material costs, and a stronger US dollar. However, domestic demand stayed moderate due to liquidity constraints and cautious spot buying, creating a gap between firm price sentiment and actual consumption. Global cost pressure intensified as European producers raised February alloy surcharges, strengthening international benchmarks and influencing Asian markets.
In India, stainless flat steel prices increased following currency weakness and higher input costs. A leading domestic producer announced price hikes across key grades, while benchmark assessments also moved up w-o-w. Despite bullish sentiment, demand remained restricted due to weather conditions, liquidity stress, and geopolitical concerns. Globally, higher nickel prices and supply restrictions supported stainless and NPI prices.
Stainless steel prices are likely to stay supported on global cues and currency trends, though further gains may depend on improvement in domestic demand and liquidity conditions.
Outlook
With premiums at domestic auctions, offers from sellers are likely to increase further in the coming week. However, it remains to be seen whether buyers will accept elevated prices.
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