- Baosteel rolls over ferro chrome purchase prices
- Indian market witnesses muted trade on bid-offer disparity
Prices for Indian high-carbon ferro chrome (HC60%, Si:4%) showed no variations w-o-w compared to last assessment on 21 February 2024. Prices were stable as market participants opted to wait and see and made only need-based purchases post-OMC’s chrome ore auction.
On 28 February, BigMint assessed the price of high-carbon ferro chrome (HC60%, Si:4%) at INR 121,000/t ($1,460/t) exw-Jajpur. In the range of INR 120,500-124,000/t ($1,454-1,496/t), about 700 t of trades were recorded. Although producers had lifted offers to INR 122,000-124,000/t exw post-sharp hike in bids seen in OMC’s chrome ore auction, buyers’ bids were still at a disparity.
On the other hand, the price of high-carbon low-silicon ferro chrome (HC60%, Si:2%) dropped INR 1,400/t ($17/t) w-o-w, settling at INR 127,000/t ($1,532/t) exw-Jajpur on 29 February.
Market update
Buyer caution impacts seller strategies: Negotiations in the market continued even after some sellers lowering their offers due to lower customer acceptance. A stainless steel manufacturer told BigMint, “I booked material on an urgent basis. The market for stainless steel is not good, despite full-scale production.” Another ferro chrome supplier, whose prices were a little higher, stated they were overbooked and not in a rush to sell.
Due to the difference between bids and offers, the market has not yet reached a tradable price range.
China’s market yet to pick up: Prices for ferro chrome (HC60%) in China were stable w-o-w at RMB 8,900/t ($1,237/t) exw-Inner Mongolia. One of China’s leading producers of stainless steel, Baosteel, has maintained its tender prices at RMB 8,495/t ($1,181/t) DAP for March. Indian exporters with long-term contracts with China typically receive bids at tender rates, which reduced their profit margins while prices remained steady.
Modest increase in Indian stainless steel prices: India’s stainless steel prices saw a slight increase of INR 2,000/t w-o-w ($24/t) and were INR 176,000/t ($2,123/t) exw-Mumbai. The recent increase in inquiries and the upward trend in LME futures prices contributed to the price increase. A major producer in this industry likewise increased the costs, although the effects would be seen in the upcoming days.
Outlook
To maintain operations, regular trades are essential. In the days ahead, prices may stabilise within a certain range, largely influenced by buyer acceptance and Chinese market sentiments.