- OMC schedules fresh ferro chrome auctions
- Tsingshan, TISCO roll over Jun tender prices
Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices rose by INR 1,200/t ($12/t) w-o-w to INR 120,200/t ($1,250/t) exw-Jajpur, as per BigMint’s assessment on 27 May. Prices increased following strong bids at Odisha Mining Corporation’s (OMC) chrome ore and Vedanta-FACOR’s ferro chrome auctions. Deals for around 2,900 t were concluded during the assessment window in the price range of INR 119,000-122,000/t ($1,238-1,269/t) exw.
Low-silicon high-carbon and low-carbon ferro chrome (C: 0.1%) prices increased as well, by INR 1,000/t ($10/t) and INR 3,000/t ($31/t) w-o-w to INR 125,000/t ($1,300/t) exw-Jajpur and INR 243,000/t ($2,528/t) exw-Durgapur, respectively. For low-carbon material, domestic deals for around 200 t were reported during the assessment window in a similar price range.
Market highlights (21-27 May)
Higher bids at auctions support market: India’s ferro chrome market witnessed improved sentiment following higher bids recorded at last week’s chrome ore auction by OMC and ferro chrome auction by Vedanta-FACOR. Following the auctions, market sentiment improved slightly, and sellers raised offers to up to INR 123,000/t ($1,279/t) exw. However, actual transactions remained largely capped at around INR 122,000/t ($1,269/t) exw, as most major domestic buyers had already completed their purchases, limiting aggressive buying activity. As a result, the market did not witness any sharp price surge despite firmer sentiments.
Meanwhile, OMC has scheduled another auction on 29 May for 1,500 t of high-carbon ferro chrome across multiple grades and sizes (Cr: 53-64%, 0-100 mm). The base price for the 100-t lot (Cr: 60-64%, 10-100 mm) was set at INR 120,000/t ($1,248/t) exw.
Additionally, at SAIL Salem Steel Plant’s reverse auction held on 27 May, around 4,300 t of ferro chrome (Cr:57-63%, 10-70 mm) were booked at an H1 price of nearly INR 138,500/t ($1,442/t) FOR, excluding taxes.
Chinese tender prices remain steady: China’s Tsingshan kept its June high-carbon ferro chrome tender price (Cr:50% basis) unchanged m-o-m at RMB 8,495/t ($1,253/t) DAP, including taxes. Additionally, TISCO also rolled over its tender price at RMB 8,295/t ($1,224/t) DAP, including taxes.
China’s domestic ferro chrome market remained mostly stable last week, supported by strong stainless steel production. However, price gains were limited due to expectations of higher ferro chrome output, improving overseas supply, and rising imports from South Africa and Zimbabwe. The chrome ore market also stayed under pressure because of high port inventories, weak buying interest, and aggressive trader sales, which weakened cost support for ferro chrome prices.
At the same time, steel mills continued to buy only as per immediate requirements despite maintaining high production levels. In the near term, ferro chrome prices are expected to remain under pressure, although high chrome ore costs may help prevent any sharp decline.
Indian stainless steel market scenario: Prices of 304 grade stainless steel HRCs declined by INR 3,000/t ($31/t) w-o-w to INR 222,000/t ($2,309/t) exw-Mumbai. Buying activity stayed cautious, with most customers purchasing only as per immediate requirements due to weak downstream demand. However, higher alloy prices, rising freight costs, and a stronger US dollar continued to support market sentiment. Imports remained slow as rupee weakness and higher global freights increased landed costs.
Globally, Indonesia’s strict nickel policies, including export restrictions and tax reforms, continued to support nickel prices and stainless steel production costs. At the same time, major global producers such as Aperam, Outokumpu, and Acerinox raised June surcharges due to higher raw material costs. In India, stainless steel flat prices softened slightly, while longs remained largely stable. Overall, the domestic market is expected to stay firm in the near term, supported by high costs and firm global sentiment despite moderate demand.
Outlook
BigMint expects ferro chrome prices to remain stable in the coming week, as sellers are unlikely to reduce offers further. Buying activity is expected to improve from next month.
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