- Domestic met coke prices rise by INR 1,200/t, supporting ferro chrome
- Chinese mills reduce Sep’26 tender prices by RMB 100/t ($15/t)
Indian ferro chrome prices remained stable w-o-w at INR 119,000/t ($1,246/t) exw-Jajpur on 26 August. Despite lower bids at the recent Vedanta-FACOR auction, sellers largely maintained firm spot offers, supported by a rise in met coke costs.
Deals for around 1,400 t of ferro chrome were concluded during the week in the range of INR 117,600-120,000/t ($1,231-1,256/t) exw. Prices of low-phos and low-silicon grades also remained stable w-o-w. Meanwhile, low-carbon ferro chrome prices edged down by INR 500/t ($5/t) w-o-w to INR 240,000/t ($2,512/t) exw-Durgapur.
Market updates (20-26 August)
Met coke costs support spot offers: Domestic met coke prices rose by INR 1,200/t ($13/t) w-o-w to INR 37,000/t ($387/t) exw-Jajpur, providing support to ferro chrome offers despite its relatively small share of overall production costs. Coking coal prices have surged, and market availability also remained somewhat tight, while improving downstream demand and higher imported coke and coking coal costs supported seller sentiment.
At Vedanta-FACOR’s ferro chrome auction on 25 August, the entire offered quantity was sold. The H1 price for the Cr:57% min lumps was INR 117,600/t ($1,231/t) exw, INR 600/t ($6/t) above the base price but INR 2,250/t ($24/t) below the previous auction on 12 August. However, spot offers remained above INR 118,500/t ($1,240/t) exw, particularly for Cr:60% material.
OMC is also scheduled to auction around 1,900 t of high-carbon ferro chrome across various grades and sizes on 29 August. The base price for the primary 100 t lot of Cr:60–64% material has been set at INR 119,000/t ($1,246/t) exw.
China tender prices face pressure: Chinese ferro chrome sentiment remained under pressure as major stainless steel producers Tsingshan and TISCO cut their September 2026 tender prices by RMB 100/t ($15/t) m-o-m. Tsingshan set its procurement price at RMB 7,995/t ($1,189/t), while TISCO’s tender price stood at RMB 7,795/t ($1,160/t), both on a 50% Cr basis and DAP including taxes.
The cuts came amid softer domestic ferro chrome prices, elevated production and ample availability. China’s ferro chrome output reached around 0.9 mnt in July, up 5% m-o-m, while subdued stainless steel demand continued to limit mills’ procurement appetite.
Indian stainless steel prices strengthen: Indian stainless steel prices strengthened during the week, providing some support to ferro chrome demand. 304-grade HRC prices increased by INR 1,000/t ($10/t) w-o-w to INR 220,000/t ($2,303/t) exw-Mumbai, amid firm raw-material costs, tighter availability and steady domestic demand.
Higher ferro molybdenum costs have also supported the premium-grade stainless segment, while mills have reduced discounts. This indicates a relatively supportive downstream environment for ferro chrome, although China’s weaker tender sentiment could limit significant price gains.
Outlook
Indian ferro chrome prices are expected to remain largely stable in the coming week, with firm met coke costs, tighter availability and improving stainless steel demand providing support to spot offers. However, softer Chinese tender prices and elevated global ferro chrome supply could limit upside. The upcoming OMC auction will be an important market indicator, particularly given its INR 119,000/t ($1,246/t) base price for Cr:60-64% material.
Leave a Reply