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India: Ferro chrome prices edge down on bid-offer disparities, falling export prices

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Ferro Chrome

BigMint Bureau

115 Reads

2 Jan 2025, 18:00 IST

India: Ferro chrome prices edge down on bid-offer disparities, falling export prices

Stability seen in stainless steel market

Tsingshan's Jan'25 tender price falls by RMB 400/t

Indian high-carbon ferro chrome (HC60%, Si:4%) prices fell by INR 1,400/t ($16/t) w-o-w in comparison with the previous assessment on 24 December. Prices dropped as gaps widened in bids and offers following lower bids in key auctions and January tender price announcement from Tsingshan.

As per BigMint's assessment on 1 January, Indian high-carbon ferro chrome (HC60%, Si:4%) prices stood at INR 102,100/t ($1,191/t) exw-Jajpur. Approximately 5,400 t of deals were reported to BigMint in the previous week within the price bracket of INR 100,000-104,500/t ($1,166-1,219/t) exw.

Prices moved down by INR 2,600/t ($30/t) w-o-w for high-carbon and low-silicon ferro chrome to INR 108,000/t ($1,259/t) exw. For low-carbon (C:0.1%) ferro chrome, sources informed that demand was good in the export market pushing up the prices by INR 8,250/t ($96/t) w-o-w to INR 209,250/t ($2,440/t) exw-Durgapur.

Market summary

Gaps widening in bids and offers: With prices under pressure, the majority of the sellers revised their offers from INR 104,000-105,000/t ($1,213-1,224/t) exw to INR 102,000-103,000/t ($1,189-1,201/t) exw levels. A seller source told BigMint: "The market has already corrected post Tsingshan's tender price announcement and maybe we will not offer now as there is no viability."

On the other hand, a buyer informed, "I received quotation of INR 102,000/t ($1,189/t) exw but did not buy as I am not sure if the market will fall below this level."

In the export segment as well, prices dropped by 5 cents/lb w-o-w to China to 81 cents/lb CNF. It dropped by 3 cents/lb and 4 cents/lb w-o-w for Japan and South Korea as well.

Tender price drop in China: Tsingshan, a major stainless steel producer in China, announced a reduction of RMB 400/t ($55/t) m-o-m in prices to RMB 6,995/t ($958/t) DAP, including taxes. Sufficient supplies in the Chinese market along with weaker demand might be the reason.

Domestic prices in China (HC60%) also fell by RMB 200/t ($27/t) w-o-w to RMB 7,200/t ($986/t) exw-Inner Mongolia. The stainless steel market had rebounded following domestic quantitative easing policies, but market fundamentals remain shaky. Supply-demand imbalance continued last week, with sluggish demand forcing the supply side to focus on reducing output.

Firm domestic stainless steel prices: Stainless steel prices for 304 grade HRC were unchanged w-o-w at INR 178,000/t ($2,076/t) exw-Mumbai. Limited demand and buying activities were reported due to the year-end holidays. However, market participants are hopeful about a rebound in demand after January 2025 expecting improved activities and potential price adjustments.

Outlook

In view of current market indications, prices are likely to stay under pressure in the days to come. We may see some correction in prices in the short term.