- 60,500 t booked of 104,800 t; most at floor price
- Bids down by upto 3% m-o-m
At OMC’s chrome ore auction held today, 60,500 t of material was booked out of 104,800 t on offer. Most grades were booked at the floor price, while only select grades attracted modest bid premiums of 1-2% (INR 300-600/t) over the base price.
Final bid prices edged down by 0.05-3% (INR 11-611/t) across all booked grades compared with the previous auction, despite OMC retaining largely unchanged chrome ore base prices. Stable Indian high-carbon ferro chrome prices in July, averaging INR 122,800/t exw, up marginally by INR 150/t ($2/t) m-o-m, supported the decision to keep base prices unchanged.
Cautious buying limits bid premiums
The moderation in bid premiums reflected continued weakness in downstream demand and an increasingly cautious buying approach across the ferro chrome value chain. Stainless steel producers maintained need-based procurement amid sluggish order inflows, comfortable inventories and persistent liquidity constraints, while expectations of further corrections in domestic steel prices during the monsoon season discouraged aggressive raw material purchases.
Meanwhile, improved domestic ferro chrome availability and comfortable inventories ensured adequate material supply, reducing the urgency for buyers to secure chrome ore through competitive bidding. The combination of ample supply, subdued consumption and cautious procurement strategies weighed on auction sentiment, resulting in lower bid premiums and softer final prices compared with the previous auction.
Lower bids at Vedanta-FACOR’s ferro chrome auction
Vedanta-FACOR’s 15 July ferro chrome auction concluded with full bookings, with the larger lot (Cr: 58% min, 10-150 mm) fetching an H1 price of INR 121,400/t ($1,255/t) exw, INR 600/t above the base price. Although as compared to previous auction on 24 June, bids (Cr:57% min) fell by INR 1,300/t ($13/t).
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