India: Ferro chrome prices remain stable amid firm market conditions

• Vedanta-FACOR auction sees higher realisation amid healthy demand
• Met coke prices rise by INR 500/t, supporting ferro chrome

Indian ferro chrome prices remained stable w-o-w at INR 119,000/t ($1,240/t) exw-Jajpur on 16 September. Market conditions remained firm, with deals for around 3,750 t concluded during the week. Rising met coke costs and healthy buying interest continued to support prices.

Market updates (10-16 September)

Rising met coke costs support prices: Domestic met coke prices increased by INR 500/t ($5/t) w-o-w to INR 42,000/t ($438/t) exw-Jajpur, providing further cost support to ferro chrome. The met coke market remained strongly bullish amid tight availability, higher imported coke replacement costs and elevated coking coal prices. Some suppliers were also holding stocks in anticipation of further price increases, keeping spot availability tight.

At the latest Vedanta-FACOR auction, the entire offered quantity was sold, while the prime lot realisation increased by INR 400/t ($4/t) from the previous auction. The higher realisation and healthy buying interest indicate that firm production costs are helping to stabilise ferro chrome prices.

China ferro chrome market remains weak: Chinese ferro chrome sentiment remained subdued as high operating rates and additional capacity kept supply ample. Minor production cuts in Inner Mongolia provided limited support, while softer chrome ore sentiment, slower inventory drawdowns and weak overseas demand reduced cost support. Cautious stainless steel buying, lower mill bids and rising 300-series inventories continued to weigh on market activity.

Indian stainless steel market remains firm: Indian stainless steel prices remained firm but cautious during the week. 304 HRC prices were stable at INR 222,000/t ($2,314/t) exw-Mumbai, while 316 HRC prices rose by INR 5,000/t ($52/t) w-o-w to INR 438,000/t ($4,566/t). Tight scrap availability and elevated alloy costs continued to support prices, although moderate demand and volatile nickel prices limited broader gains.

Outlook

Indian ferro chrome prices are expected to remain firm, supported by higher met coke costs and healthy buying interest, while weak Chinese sentiment may limit upside.