- OMC’s ferro chrome auction settles at base price
- Taiyuan’s tender prices stay unchanged m-o-m
Prices of Indian high-carbon ferro chrome (HC60%, Si:4%), in comparison to the previous assessment on 22 May, showed a minor decline of INR 500/tonne ($6/t) w-o-w. Prices reached a five-month low, as per data maintained with BigMint, since the market remained muted and did not significantly improve.
Prices of high-carbon ferro chrome (HC60%, Si:4%) were at INR 106,000/t ($1,271/t) exw-Jajpur, according to BigMint’s assessment on 29 May. Around 1,000 t of deals were concluded last week within the price bracket of INR 105,000-106,500/t ($1,259-1,277/t).
Both low-carbon (C:0.1%) and high-carbon (HC60%, Si:2%) low-silicon ferro chrome prices saw declines as well, with w-o-w drop of INR 3,400/t ($41/t) and INR 700/t ($8/t), respectively. They were priced at INR 231,600/t ($2,776/t) exw-Durgapur and INR 113,600/t ($1,362/t) exw-Jajpur.
Factors driving Indian ferro chrome market sentiments
OMC’s auction reflects market caution: Moderate response was seen in the ferro chrome auction conducted by OMC on 24 May, as just 1,000 t of the 3,100 t offered were sold. And that too at INR 105,839/t, which was the base price. This showed the current state of the domestic market. Buyers remained cautious in procuring material and sellers also had to adopt various strategies in order to continue the operations.
A key producer in the domestic sector informed BigMint, “We are not offering material currently as market rates are too low for us. There’s no good realization in exports either.”
Stable prices in China: Prices of ferro chrome (HC60%) in China were stable w-o-w at RMB 9,150/t ($1,262/t) exw-Inner Mongolia. According to sources, China’s production of ferro chrome hit 0.75 mnt this month. This created an oversupply situation in the market and despite rising chrome ore costs, prices remained steady.
Taiyuan Iron and Steel Corporation maintained tender prices unchanged m-o-m for June at RMB 8,795/t ($1,213/t).
Shifts in European pricing system: Sources disclosed, the primary reason for withdrawal of the European benchmark prices was that the pricing system had become less significant. Merafe will come up with different methods to calculate rates for each of its clients.
Firm stainless steel prices in India: Prices of 304 grade stainless steel held steady w-o-w at INR 182,000/t ($2,182/t) exw-Mumbai. Stability was primarily due to unchanged nickel prices on the LME platform, which dipped a slight $160/t w-o-w. This industry remains the largest consumer of ferro chrome, and the outcome of the elections may provide more clarity, going forward.
Outlook
Prices may continue to remain range-bound in the upcoming days with slight downward corrections.
