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India: Ferro chrome prices inch down even as market awaits OMC chrome ore auction

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Ferro Chrome

BigMint Bureau

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15 Feb 2024, 18:04 IST

India: Ferro chrome prices inch down even as market awaits OMC chrome ore auction

FACOR's ferro chrome auction fetches higher bids

Slight uptick in Indian stainless steel prices

Prices for domestic high-carbon ferrochrome (chrome 60%, Si:4%) decreased by INR 900/t ($11/t) w-o-w from the previous evaluation on 7 February. Prices remained range-bound last week, as market participants awaited the results of OMC's auction to gain price clarity.

The price of high-carbon ferro chrome exw-Jajpur was INR 117,900/t ($1,420/t) on 14 February, according to BigMint's assessment.

Moreover, the cost of high-carbon low-silicon ferro chrome (chrome 60%, Si:2%) dropped INR 1,600/t ($19/t) w-o-w on 15 February to INR 125,500/t ($1,512/t) exw-Jajpur.

Market summary

Cautious approach prevails: For the previous 15 to 20 days, domestic ferro chrome offers have been in the INR 117,900-119,000/t ($1,420-1,433/t) range. While there were little fluctuations, no significant movement was seen because market participants wanted further clarity on prices.

At Vedanta-FACOR's ferro chrome auction, the bigger lot of 10-150 mm (Cr: 57.5% min) was sold at an H1 price of INR 117,900/t exw, marking a nominal 1% increase from the base price of INR 117,000/t. Meanwhile, the smaller lot of same grade and size fetched INR 118,000/t exw. Prices have risen by INR 500/t m-o-m on tight supplies and supported market sentiments.

Indian stainless steel prices rise: Prices for 304 grade stainless steel increased INR 3,000/t ($36/t) w-o-w to INR 176,000/t ($2,120/t) exw-Mumbai. The primary cause of it was the rise in raw material and futures prices. A slight scarcity of material also contributed to the price increase.

Global market: China's market activity was quiet over the ongoing New Year's break. Prices (HC60%) stood at RMB 8,900/t ($1,250/t) exw-Inner Mongolia. After the holidays, market dynamics in China will have a significant impact on worldwide pricing trends.

Outlook

BigMint estimates that prices will likely maintain their current range in the coming days with minimal fluctuations. OMC's chrome ore auction scheduled on 19 March will pave the way for greater clarity on prices going forward.