India: Ferro chrome prices hit 4-month low; OMC auction results awaited

• Base prices fall by 5% in OMC auction
  
  
• April tender prices for TISCO stand at RMB 8,795/t ($1,215/t)
  
  

Indian high-carbon ferro chrome (HC60%, Si:4%) prices fell by INR 1,600/t ($19/t) w-o-w in comparison to the previous assessment on 10 April. Prices fell as bid-offer discrepancies persisted in the market and most players awaited the conditions of the market post-OMC's chrome ore auction on 19 April.

The price of Indian high-carbon ferro chrome (HC60%, Si:4%) exw-Jajpur was INR 108,300/t ($1,297/t), according to BigMint's assessment on 17 April. In the previous week, around 3,100 t of deals were finalised within the price bracket of INR 108,000-110,000/t ($1,293-1,317/t).

Additionally, on 18 April, prices of high-carbon low-silicon ferro chrome (HC60%, Si:2%) exw-Jajpur were INR 114,800/t ($1,374/t), down by INR 2,400/t ($29/t) w-o-w.

Market review

Cautious approach ahead of auction: The results of the Odisha Mining Corporation (OMC) auction, which will sell 65,000 t of chrome ore on 19 April, were the center of attention last week. The offered quantity has been increased by 7,300 t for this auction, and the base prices have been reduced by 5% (INR 403-1,148/t) ($5-$14) m-o-m for all grades.

Negotiations continued to surround the market, however deals were still carried out at lower prices. A producer was quoted as saying to BigMint, "Prices for smaller bookings are around INR 109,000/t ($1,305/t), and prices for bulk orders are around INR 108,000/t ($1,293/t)."

Bids by Chinese mills rise m-o-m: Prices for ferro chrome (HC60%) in China were stable w-o-w at RMB 8,950/t ($1,236/t) exw-Inner Mongolia. For April, Taiyuan Iron and Steel Corporation (TISCO) announced tender prices of RMB 8,795/t ($1,215/t), an increase of RMB 500/t ($69/t) m-o-m. Despite this, the ferro chrome market did not appear promising.

Trends in Indian domestic stainless steel sector: With a slight increase of INR 1,000/t ($12/t) to INR 174,000/t ($2,083/t) exw-Mumbai, the price of stainless steel for 304 grade stayed consistent w-o-w. With fluctuating London Metal Exchange (LME) nickel prices, the market is anticipated to stay range-bound in the near future and may show some positive signs post-general elections in India.

Outlook

The outcome of OMC's chrome ore auction on 19 April will determine pricing trends in the days ahead.