India: Ferro chrome prices edge down amid limited demand, stable trade

• Bid-offer disparities lead to moderate inquiries
  
  
• Market resists higher offers post-OMC auction

  
  
  

Indian high-carbon ferro chrome (HC60%, Si:4%) prices experienced a slight decline of INR 500/tonne (t) ($6/t) w-o-w to INR 109,900/t ($1,307/t) exw-Jajpur on 30 October as compared to INR 110,400/t ($1,313/t) on 23 October. Prices were largely stable amid limited demand, and regular trades were carried out at the ongoing market rates. Additionally, resistance was seen towards higher offers.

Spot trades of approximately 2,600 t were reported to BigMint in the price bracket of INR 109,000-113,500/t ($1,296-1,350/t) exw.

Export offers to China declined by 3 cents/pound (lb) w-o-w to 90 cents/lb CNF Tianjin. For Japan and South Korea, prices were stable w-o-w at 97 cents/lb CNF Tokyo and 96 cents/lb CNF Busan, respectively.

Market summary

Routine trades observed: Moderate trade momentum was observed this week, which kept the ferro chrome market and prices stable. The rise in chrome ore rates, following the latest auction from the Odisha Mining Corporation, prompted sellers to raise offers to up to INR 115,000-116,000/t, but it generated limited acceptance among buyers. Subsequently, prices settled at INR 109,900/t. A major domestic seller who was offering higher, at around INR 115,000/t ($1,368/t) exw, informed BigMint, "Our usual monthly output is at around 33,000-35,000 t a month, but as of now, we are operating at half of our capacity due to the higher cost of production."

Chinese market sees slowdown: Ferro chrome (HC60%) prices in China inched down by RMB 100/t ($14/t) w-o-w to RMB 8,100/t ($1,137/t) exw-Inner Mongolia. The drop in tender prices for November, along with sluggish demand for 200 series stainless steel, exerted downward pressure on ferro chrome prices.

Stainless steel prices remain stable: Domestic prices of 304-grade hot-rolled coils (HRCs) remained stable w-o-w at INR 182,000/t ($2,164/t) exw-Mumbai. Demand remained weak, and only need-based procurement was carried out ahead of the Diwali holidays. However, a slight improvement in demand is expected post-Diwali.

Outlook

BigMint estimates prices to stay range-bound in the days ahead, with some fluctuations.