- OMC auction sees strong demand and higher prices
- Tsingshan raises September tender price by RMB 300/t
Indian high-carbon ferro chrome (HC60%, Si:4%) prices surged by INR 6,500/t ($74/t) as compared to the assessment on 20 August. Prices reached their peak since November last year as material availability was limited which led to the rise in offers.
High-carbon ferro chrome (HC60%, Si:4%) prices in India were INR 109,500/t ($1,249/t) exw-Jajpur, as per BigMint’s assessment on 27 August. Around 2,000 t of deals were reported last week in the price bracket of INR 104,000-112,000/t ($1,187-1,278/t) exw.
Similarly, prices went up for other variants as well. For low-silicon high-carbon ferro chrome, it increased by INR 7,700/t ($88/t) w-o-w to INR 115,000/t ($1,312/t) exw-Jajpur. Low-carbon ferro chrome (C: 0.1%) prices too increased by INR 4,300/t ($49/t) w-o-w to INR 204,000/t ($2,328/t) exw-Durgapur.
Market summary (21-27 August 2025)
Offers rise on tight supplies, OMC’s auction outcome: Ferro chrome supply in the market became tight as key sellers were not offering material. The situation worsened due to continuous rains in Odisha, which affected the availability of chrome ore. Because of this, only a few sellers floated offers, and they raised their prices. This trend was clearly seen in OMC’s ferro chrome auction on 25 August in which limited supply and higher demand pushed up offers, showing the impact of the ongoing supply crunch in the market.
In that auction, 3,050 t was sold from 3,600 t offered. The 1,500 t lot (Cr: 60-64%, Si: 4%, 10-100 mm) was booked in the price range of INR 108,700-108,800/t ($1,240-1,241/t) exw, up by INR 9,100-9,200/t ($104-105/t) over the base price. Another 100 t of high-carbon lot (Cr: 60-63%, Si: 2%) was closed at INR 111,500-111,600/t ($1,272-1,273/t) exw.
Tsingshan hikes September tender price: Tsingshan raised its ferro chrome tender price by RMB 300/t ($42/t) m-o-m to RMB 8,295/t ($1,159/t) DAP, including taxes, for September 2025 deliveries.
Delivery costs too went up in China due to to logistical challenges and tight chrome ore supply. A strike in South Africa created severe port backlogs, pushing producers to source Turkish ore, though longer transit times increased risks. High-carbon ferro chrome producers faced sharper cost impacts, while low-carbon producers managed better through efficiency gains.
On the demand side, high-grade ferro chrome consumption grew with new energy applications like iron-chromium flow batteries and hydrogen coatings, though stainless steel demand stayed weak and market trading remained subdued.
Uptick in Indian stainless steel prices: Stainless steel prices for 304 grade HRC increased by INR 2,500/t ($29/t) w-o-w to INR 189,500/t ($2,162/t) exw-Mumbai. The rise was supported by supported by stronger raw material costs and global price hikes, though local demand stayed weak amid monsoon disruptions and festive slowdown. Heavy rains even halted deliveries in Mumbai, adding to sluggish spot trade.
Exports, mainly longs to Europe and the Middle East, provided some relief, but overall consumption remained muted. Secondary producers faced pressure, running below capacity and shifting towards 200-series output using scrap to cut costs. Near-term outlook remains range-bound, with expectations of improved sentiment before Diwali as restocking picks up and alloy prices strengthen.
Outlook
Although offers have risen in the domestic market, sustainability of these offers will largely depend on buyers’ acceptance. So in the coming days, trends would become clearer.
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