- Bids fall 1-2% or majority grades at OMC’s chrome ore auction
- Low-phos ferro chrome prices rise w-o-w
Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices were largely stable last week, going down slightly by INR 100/t ($1/t) w-o-w to INR 119,000/t ($1,244/t) exw-Jajpur. Regular trades in the market at current rates helped to keep prices firm.
Around 5,000 t of deals were reported to BigMint last week within the price bracket of INR 118,500-122,000/t ($1,239-1,276/t) exw-Jajpur.
Prices came down a bit for low silicon and low carbon ferro chrome as well. However, with limited sellers in the market, prices for low-phos ferro chrome went up by INR 1,200/t ($13/t) w-o-w to INR 129,600/t ($1,355/t) exw-Jajpur.
Market summary (13-19 August)
Prices hold amid softer market sentiment: Ferro chrome prices remained largely balanced last week, with around 5,000 t of deals concluded in the domestic market. However, amid lower bids from buyers, offers edged lower to as low as INR 118,500/t ($1,239/t) exw. Market participants were also closely tracking OMC’s latest chrome ore auction, which concluded yesterday. They offered 104,700 t of chrome ore, of which 68,800 t was booked.
Bids declined by 1-2% (INR 141-566/t) m-o-m for the majority of grades, while a few grades recorded increases of 1-4% (INR 236-884/t). Despite softer bids across most grades, premiums over the base price increased by up to 5% (INR 100-1,400/t). With auction bids showing a slight decline, market participants will be watching closely in the coming days to assess whether ferro chrome prices see any further correction.
Indian stainless market gains on firm fundamentals: Indian stainless steel prices for 304 grade HRC inched up by INR 1,000/t ($10/t) w-o-w to INR 219,000/t ($2,290/t) exw-Mumbai. Prices were supported by higher raw material costs, tight availability and healthy domestic demand. Limited scrap availability and elevated freight costs continued to make imports less viable, providing further support to prices.
Finished long products remained firm, with improving inquiries ahead of the festive season, although scrap availability remained tight. Export activity was subdued as mills largely focused on existing bookings.
In China, weak demand, bearish futures sentiment and rising production kept prices under pressure, while stable inventories and firm NPI costs offered support. Japan’s market remained firm on higher input costs.
Near-term sentiment in India is expected to remain firm but cautious, with demand, nickel prices, scrap availability and import flows key to market direction.
Soft demand weighs on Chinese market: In China, Ferro chrome prices remained under pressure as weaker chrome ore costs and limited stainless steel demand weighed on the market. Major mills had already completed their tenders, while the seasonal slowdown reduced fresh ferro chrome buying. Many buyers preferred to use existing stocks instead of making new purchases.
Chrome ore demand also remained weak, with slower inventory drawdowns and limited strength in overseas ore prices. Ferro chrome producers faced pressure on margins, while traders stayed cautious. In the coming days, weak steel demand may limit gains, while high production costs and lower output could provide some downside support.
Outlook
Indian ferro chrome prices are likely to remain range-bound with a slight downside bias in the coming week. Softer OMC auction bids and weak Chinese sentiment may limit upside, while firm stainless steel prices, healthy domestic demand and tight raw material availability could provide support.
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