- Vedanta-FACOR schedules ferro chrome auction on 11 Sep
- Indian stainless steel prices unchanged w-o-w
Indian ferro chrome prices stayed largely stable last week, going down slightly by INR 200/t ($2/t) w-o-w to INR 118,800/t ($1,248/t) exw-Jajpur. Prices were stable following firm input costs especially of met coke.
Limited deals of around 1,000 t of deals were reported last week as buying activity stayed largely muted last week. Prices of low-phos and low-silicon grades also remained stable w-o-w. Meanwhile, low-carbon ferro chrome prices edged down by INR 1,000/t ($11/t) w-o-w to INR 239,000/t ($2,511/t) exw-Durgapur.
Market recap (3-9 September)
High met coke costs keep ferro chrome offers firm: India’s domestic met coke market continued its sharp uptrend during the week, supported by tighter availability, improving downstream demand and rising imported coke and coking coal costs. Tight Indonesian availability, higher coking coal costs and elevated freight are likely to keep replacement costs and domestic met coke offers firm.
The sustained rise in met coke costs provided support to ferro-chrome prices by raising producers’ input and replacement costs. Consequently, ferro chrome sellers largely held offers firm despite slow buying interest, keeping prices stable during the week. Further upside in met coke remains possible if Indonesian supply disruptions persist and Chinese buying stays active. However, weaker downstream margins and demand elasticity could eventually limit gains.
Tight scrap supply supports stainless market: Indian stainless steel prices for 304 grade HRC were unchanged w-o-w at INR 222,000/t ($2,332/t) exw-Mumbai. Prices were supported by tight scrap availability and higher replacement costs. Mills continued to face elevated input costs, providing support to finished steel offers despite moderate buying interest. Flat products remained largely stable as buyers stayed cautious ahead of the festive season, while long products showed stronger momentum as higher scrap costs were reflected in mill offers.
Overall market sentiment remained positive, although demand was not strong enough to support aggressive buying. However, continued firmness in scrap availability and replacement costs is likely to provide a floor to finished stainless steel prices. Market participants are therefore expected to maintain a cautious but firm stance, with limited downside unless downstream demand weakens further.
Weak demand caps Chinese market: China’s ferro chrome market remained stable but under pressure from high supply and cautious steel mill buying. Lower September tender prices and slow trading continued to weigh on sentiment, while stable smelting costs offered some support. Chrome ore prices also remained under pressure due to high port stocks and weak overseas futures, although South African and Turkish suppliers resisted major price cuts.
Weak ferro chrome demand, high 300-series inventories and limited buying from downstream industries kept the market subdued. A stronger September-October restocking cycle could provide some support, but weaker demand may keep prices under pressure.
Outlook
Indian ferro-chrome prices are expected to remain range-bound with a firm undertone in the coming week, supported by elevated met coke and replacement costs. However, muted buying interest and weak Chinese demand may limit upside. The FACOR auction on 11 September, featuring two high-carbon ferro chrome lots with Cr:57% min (10-150 mm), will be a key price indicator.
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