- Tight supplies, bids in last week’s chrome ore auctions hold ferro chrome prices
- Baosteel keeps its ferro chrome tender prices unchanged
The price of Indian high-carbon ferro chrome (HC60%, Si:4%) experienced an increase of INR 600 per tonne (t) ($7/t ) w-o-w. Prices rose due to a continued material shortage in the market, and buyers resisted accepting higher offers.
As of 31 January, BigMint’s assessment reported high-carbon ferro chrome (HC60%, Si:4%) prices at INR 118,500/t ($1,428/t) exw-Jajpur. Last week, around 1,000 t were transacted within the price range of INR 117,500-118,000/t ($1,418-$1,422/t). Conversely, high-carbon low-silicon ferrochrome (HC 60%, Si: 2%) prices declined by INR 1,000/t ($12/t) w-o-w, settling at INR 125,100/t ($1,508/t) exw-Jajpur on 1 February.
Key market highlights
Limited acceptance for higher proposals: The availability of material remained restricted, primarily attributed to the elevated cost of chrome ore. Consequently, producers initiated quoting higher offers; however, buyers did not show urgency in procuring the material. Persistent negotiations from prospective buyers prevented the sustainability of higher offers in the market.
Stability in Indian stainless steel prices: 304 grade stainless steel prices remained unchanged at INR 173,000/t ($2,085/t) exw-Mumbai w-o-w. The stability in prices can be attributed to limited inquiries in this sector.
Chinese stainless steel mills keep bids unchanged for ferrochrome: Ferrochrome (HC60%) prices in China remained unchanged w-o-w at RMB 8,900/t ($1,254/t) exw-Inner Mongolia. Baosteel, along with Tsingshan, maintained its tender price at RMB 8,495/t ($1,197/t) for February. Ahead of the upcoming new year holidays, trading activities also slowed down.
Amidst slow downstream demand, spot market activities in Japan stayed weak as well.
Outlook
Given the prevailing market conditions, it is anticipated that prices will remain within the current range, experiencing minor fluctuations.