- Tsingshan keeps May tender prices steady at RMB 8,995/t ($1,198/t)
- Prices hold firm in domestic stainless steel market
Indian high-carbon ferro chrome (HC60%, Si:4%) prices showed little variation w-o-w, falling INR 700/t ($8/t) from the previous assessment on 24 April, 2024. After OMC’s and Vedanta-FACOR’s auction last month, the market tried to remain at a particular level, and so prices did not move up very significantly.
According to BigMint’s assessment on 1 May, the price of Indian high-carbon ferro chrome (HC60%, Si:4%) was INR 107,900/t ($1,293/t) exw-Jajpur. Around 2,900 t of trades within the price range of INR 107,000-109,000/t ($1,282-1,306/t) were reported to BigMint during the previous week.
With a slight increase of INR 700/t ($8/t) to INR 114,300/t ($1,370/t) exw-Jajpur on 2 May, high-carbon low-silicon ferro chrome (HC60%, Si:2%) also stayed stable w-o-w. Prices for low-carbon (C:0.1%) ferro chrome were hovering at INR 239,500/t ($2,870/t) exw-Durgapur on 2 May.
Market recap
Market reaction post FACOR’s auction: Majority of the market players were not prepared for the price that Vedanta-FACOR’s 24 April ferro chrome auction brought in at INR 106,400/t ($1,275/t). Considering the whole cost of production, producers were hesitant to reduce their offerings to that extent. As routine operations had to be carried out, buyers also booked material as seen in the recent trades.
A prominent producer was quoted as saying to BigMint,“We’re not offering material in the market at this time because current prices are not viable. Other materials like low silicon and low carbon ferro chrome are being produced by us.”
China’s market dynamics: Prices ferro chrome (HC60%) prices in China were stable w-o-w at RMB 8,950/t ($1,236/t), while the price for 50% grade was RMB 8,675/t ($1,198/t) exw-Inner Mongolia. Major stainless steel manufacturer Tsingshan announced its tender pricing for May, which remained constant m-o-m at RMB 8,995/t ($1,242/t). However, given the dynamics of the local China’s market, the prices were higher than the spot prices. Everything is dependent on the market of stainless steel; if demand picks up after the holidays, spot prices could reach tender price levels or even higher.
Stability in Indian stainless steel sector: Prices for 304 grade stainless steel remained constant w-o-w, falling by a slight INR 1,000/t ($12/t) to INR 176,000/t ($24,311/t) exw-Mumbai. There was limited activities in the market, and the industry is still surrounded by uncertainty due to fluctuations in LME nickel pricing.
Outlook
According to BigMint, prices are anticipated to stay rangebound in the coming days. While a slight correction is possible, a significant decline is unlikely.