- Stainless steel demand weak
- Tsingshan lifts Apr’26 tender price by $22/t
Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices witnessed a drop of INR 1,000/t ($11/t) as compared to the assessment on 18 March. Prices fell as the majority of key buyers were not in the market which prompted sellers to lower their offers.
High-carbon ferro chrome (HC 60%, Si: 4%) prices in India were INR 118,000/t ($1,256/t) exw-Jajpur, as per BigMint’s assessment on 25 March. Around 1,200 t of deals were reported last week within the price range of INR 117,500-121,000/t ($1,250-1,288/t) exw.
Low-silicon high-carbon ferro chrome (HC 60%, Si: 2%) prices too fell by INR 500/t ($5/t) w-o-w to INR 123,500/t ($1,314/t) exw-Jajpur. Meanwhile, low-carbon ferro chrome (C: 0.1%) prices edged up by INR 400/t ($4/t) w-o-w to INR 226,400/t ($2,409/t) exw-Durgapur.
Market recap (19-25 March)
Restricted stainless steel demand: Stainless steel prices for 304 grade CRC were stable w-o-w at INR 220,000/t ($2,341/t) exw-Mumbai. Finished prices remained stable w-o-w as supply issues at major mills, caused by fuel shortages, limited market availability. A stronger US dollar against the rupee also pushed up logistics costs. However, domestic demand stayed weak, with buyers purchasing only for immediate requirements due to tight liquidity and slow bookings.
In finished flats, prices stayed firm amid supply disruptions and higher input costs. A leading producer also raised coil prices across grades for the third time this month.
Finished longs also strengthened due to rising raw material costs, despite weak demand. Globally, higher energy and raw material costs supported prices, and the Indian market is likely to remain supported, though cautious buying may continue.
Cautious bidding seen at OMC’s auction: At OMC’s chrome ore auction on 19 March, 67,500 t was sold out of 104,300 t offered. Bids edged down slightly by 1-2% (INR 195-529/t) m-o-m for almost all the grades.
Additionally, at its ferro chrome auction yesterday, no bids were received indicating buyer hesitance and anticipation of further price drop. In the auction, the base price for the bigger lot of 700 t (Cr: 60-64%, 10-100 mm) was set at INR 118,700/t ($1,263/t) exw. A domestic ferro chrome seller was recently quoted as saying to BigMint, “As the chrome ore auction price is more or less at same level, so ferro chrome offer price should not change much. It all depends on the buyers now.”
Rise in Tsingshan’s tender price: Tsingshan raised its ferro chrome tender price by RMB 150/t ($22/t) m-o-m to RMB 8,395/t ($1,216/t) DAP, including taxes, for April deliveries.
In Chinese market, ferro chrome prices remained stable w-o-w as weak demand balanced strong cost support. High chrome ore prices continued to keep production costs elevated, while slow stainless steel demand and cautious market sentiment restricted trading activity.
Chrome ore prices stayed firm due to strong overseas supplier sentiment and reduced selling pressure, despite sufficient port inventories. High operating rates at ferro chrome plants maintained regular ore demand, but rising raw material costs squeezed producer margins.
Outlook
With limited inquiries in the market and subdued response at recent domestic auctions, ferro chrome prices might witness a drop in the days ahead.
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