India: Ferro chrome prices remain stable w-o-w as market awaits outcome of key auction

• Base prices fall m-o-m at OMC’s chrome ore auction
• Stainless steel prices inch down amid weak demand

Indian high-carbon ferro chrome (HC60%, Si:4%) prices remained stable w-o-w, inching down by INR 200/t ($2/t) compared to the previous assessment on 8 January. Prices were steady, as most market participants awaited the results of the latest chrome ore auction from Odisha Mining Corporation, scheduled for 17 January 2025.

As per BigMint’s assessment on 15 January, Indian high-carbon ferro chrome (HC60%, Si:4%) prices were at INR 99,100/t ($1,146/t) exw-Jajpur. A small volume, amounting to around 200 t, was traded within INR 110,500-101,000/t ($1,278-1,168/t) exw.

Low-silicon ferro chrome prices also edged down by INR 300/t ($3/t) w-o-w to INR 106,000/t ($1,226/t) exw-Jajpur. Meanwhile, low-carbon (C:0.1%) ferro chrome prices stood unchanged w-o-w at INR 209,250/t ($2,420/t) exw-Durgapur.

Market summary

Base prices trimmed at OMC’s chrome ore auction: For its upcoming chrome ore auction on 17 January, OMC has offered 76,900 t of material, an increase from 65,800 t in the previous month. However, base prices declined by 7-9% (INR 921-1,415/t) m-o-m for most grades.

This auction remains the major driving force in the ferro chrome market; hence, activities were muted last week. A seller recently informed BigMint, “Deals were made last week at around INR 100,000/t ($1,156/t) exw levels, but now, the market has fallen a bit.”

A buyer stated, “Looking at current trends, I am still bearish on prices.”

China’s market unchanged w-o-w: Ferro chrome (HC60%) prices in China were steady w-o-w at RMB 7,200/t ($982/t) exw-Inner Mongolia. In the Chinese stainless steel segment, the supply-demand imbalance persisted, and weak demand continued to surround the market. As a result, reducing supply remained the only viable option. With limited improvement in downstream demand, price pressures are expected to persist.

Domestic stainless steel prices inch down: Prices of stainless steel 304-grade hot-rolled coils (HRCs) dropped by INR 1,000/t ($136/t) w-o-w to INR 177,000/t ($24,142/t) exw-Mumbai due to weak buying interest. A 3% w-o-w increase was observed in LME nickel prices, but that could not stop stainless steel prices from falling. In the coming days, rising nickel prices may lead to upward pressure, but its sustainability will mostly depend on domestic demand.

Outlook

The results of OMC’s upcoming chrome ore and ferro chrome auctions will determine the ferro chrome price trajectory in the days ahead.