- FACOR auction closes at INR 109,100/t
- OMC raises chrome ore base prices by 2% across grades
Indian high-carbon ferro chrome (HC60%, Si:4%) increased by INR 2,500/t ($30/t) w-o-w in comparison to the previous assessment on 12 June. Prior to last week, prices had been gradually rising and remained on uptrend following increased offer prices in the Vedanta-FACOR auction.
High-carbon ferro chrome (HC60%, Si:4%) prices stood at INR 109,300/t ($1,310/t) exw-Jajpur, as per BigMint’s assessment on 19 June. Around 1,300 t of deals were concluded last week within the price bracket of INR 107,000-110,000/t ($1,283-1,319/t).
High-carbon (HC60%, Si:2%) low-silicon ferro chrome prices also increased by INR 2,400/t ($29/t) w-o-w to INR 117,000/t ($1,402/t) exw-Jajpur. Low-carbon (C:0.1%) ferro chrome prices, however, stayed steady w-o-w at INR 229,000/t ($2,745/t) exw-Durgapur on 20 June.
Factors driving up prices
FACOR auction outcome, OMC’s base price hike: The larger lot of 10-150 mm was sold at INR 109,100/t ($1,308/t) in FACOR’s auction on 17 June, up by 3% from the previous auction on 5 June. Offers from producers had increased earlier, but after this they increased even more. Acceptance level from the buyers side was also gradually improving.
Additionally, OMC plans to auction off 60,100 t of chrome ore on 20 June. Offered quantity has been reduced by 7,200 t m-o-m. There’s 2% base price increase for all grades mainly due to limited supply of chrome ore and the rise in ferro chrome ore prices.
A major domestic buyer was quoted as saying to BigMint, “Offers are definitely up as a major producer is out of the market for almost a month. But we are yet to conclude any deals at those levels.”
China’s market scenario: Prices for ferro chrome (HC60%) in China remained stable w-o-w at RMB 9,250/t ($1,274/t) exw-Inner Mongolia. However, chrome ore prices were high particularly from South Africa due to limited supplies along with increased ocean freight charges. The market, however, moved slowly since players were waiting for the July tender prices of the big stainless steel companies.
Indian stainless steel prices hold steady: Prices for 304 grade stainless steel were steady w-o-w at INR 179,000/t ($2,140/t) exw-Mumbai. The price of LME nickel dropped, and buyers showed little enthusiasm for acquiring the material. The prices may remain under pressure in the coming days as a significant domestic producer of stainless steel is reportedly planning to lower its offer prices.
Outlook
The outcome of today’s OMC chrome ore auction will determine future price trends.
