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India: Ferro chrome prices hold firm w-o-w as market participants remain on sidelines

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Ferro Chrome

BigMint Bureau

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20 Dec 2024, 18:26 IST

India: Ferro chrome prices hold firm w-o-w as market participants remain on sidelines

Bids drop for most grades at OMC's chrome ore auction

Baosteel cuts Dec'24 tender prices by RMB 700/t m-o-m

Indian high-carbon ferro chrome (HC60%, Si:4%) prices were steady this week, just falling slightly by INR 500/tonne (t) ($6/t) w-o-w. Prices were stable, as most market players remained on the sidelines, awaiting the conclusion of the chrome ore auction from the Odisha Mining Corporation (OMC) on 18 December.

As per BigMint's assessment on 20 December, Indian high-carbon ferro chrome (HC60%, Si:4%) prices stood at INR 105,000/t ($1,234/t) exw-Jajpur. Deals for around 1,400 t were recorded by BigMint this week within the price bracket of INR 104,500-105,500/t ($1,228-1,240/t) exw.

High-carbon, low-silicon ferro chrome prices witnessed a slight uptick of INR 350/t ($4/t) w-o-w to INR 113,600/t ($1,335/t) exw-Jajpur. However, for low-carbon (C:0.1%) ferro chrome, there was a drop of INR 2,000/t ($24/t) w-o-w to INR 205,500/t ($2,415/t) exw-Durgapur.

Market summary

OMC auction keeps market quiet: Most players stayed away from the market this week, awaiting the results of OMC's chrome ore auction, which concluded on 18 December. Of the 65,800 t offered (including the sub-40% grade), 30,800 t of material were sold. Bids fell 9-36% m-o-m for most grades (INR 2,586-11,020/t). A bid premium of 10-25% (INR 2,100-5,500/t) was observed, but only for higher grades.

Commenting on the market scenario, a stainless steel producer informed BigMint, "We will float inquiries after a couple of days, as prices may fall due to lower bids at OMC's auction."

Tender prices continue to fall in China: After Tsingshan and TISCO reduced their ferro chrome tender prices for December, Baosteel followed suit, cutting the same by RMB 700/t ($96/t) m-o-m to RMB 7,395/t ($1,013/t).

However, domestic prices (HC60%) were stable w-o-w at RMB 7,400/t ($1,014/t) exw-Inner Mongolia, and overall chrome ore and ferro chrome inventories were at their usual levels. In the coming days, bids from stainless steel mills and their demand will determine pricing trends.

Dynamics in stainless steel remain unchanged: Prices of stainless steel 304-grade hot-rolled coils (HRCs) were stable w-o-w at INR 178,000/t ($2,092/t) exw-Mumbai. The market continued to encounter weak demand and limited buying activities. As the year-end approaches, a further correction in stainless steel prices might be seen.

Outlook

Prices are expected to witness marginal corrections in the days ahead. The results of Vedanta-FACOR's ferro chrome auction on 20 December will also influence prices.