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India: Ferro chrome prices dip amid sustained market resistance

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Ferro Chrome

BigMint Bureau

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11 Jul 2024, 17:32 IST

India: Ferro chrome prices dip amid sustained market resistance

Indian ferro chrome export prices to China inch down

Stainless steel prices in India remain range-bound

Indian high-carbon ferro chrome (HC60%, Si:4%) prices inched down further by INR 800/t ($10/t) w-o-w in comparison to the previous assessment on 3 July. Prices dropped as resistance continued in the market towards higher offers.

Trends in ferro chrome prices

Domestic: India high-carbon ferro chrome (HC60%, Si:4%) prices were at INR 110,300/t ($1,321/t) exw-Jajpur, as per BigMint's assessment on 10 July. Around 4,600 t of deals were reported to BigMint within the price bracket of INR 109,500-113,500/t ($1,311-1,359/t) exw.

There was a notable decrease in the price of high-carbon low-silicon ferro chrome (HC60%, Si:2%), falling by INR 3,300/t ($40/t) w-o-w to INR 115,700/t ($1,385/t) exw-Jajpur. Furthermore, low-carbon (C:0.1%) ferro chrome prices also dropped by INR 2,500/t ($30/t) w-o-w to INR 225,500/t ($2,700/t) exw-Durgapur on 11 July.

Exports: Export prices to China dropped by a little 0.5 cents/lb w-o-w to 98 cents/lb CNF-Tianjin. However, export prices to Japan inched up by 1.5 cents/lb w-o-w to 101.5 cents/lb CNF-Tokyo.

Factors affecting prices

Market skepticism towards higher offers: Out of 4,600 t deals which were recorded last week, approximately 4,100 t were closed in between INR 109,500-111,000/t ($1,311-1,329/t) exw. So the domestic market in the last week operated mostly at these levels.

One of the largest stainless steel producers stated, "The stainless steel market in India is still not performing well. Imported materials are still providing competition. In such a scenario, buying raw materials at high rates and in bulk are a bit risky. Additionally, the Union Budget is coming on 23 July. Only after that will we have a clearer picture of where the market is headed."

China's market scenario: Prices of ferro chrome (HC60%) in China were stable over the previous week at RMB 9,150/t ($1,259/t) exw-Inner Mongolia. The domestic market was oversupplied and demand for it remained weak. But the price of chrome ore remained high, preventing a steep decline.

Stable stainless steel prices: The cost of stainless steel for 304 grade HRC stayed constant w-o-w at $178/t ($2,131/t) exw-Mumbai. It was due to stable nickel prices in LME platform. Over the past few weeks, buyers in this sector have shown little interest in purchasing, and in the near future, prices may remain range-bound or decline.

Outlook

Given current market conditions, prices may continue to decline in the coming days. OMC's chrome ore auction may be scheduled next week which will likely influence the future price trajectory.