India: Ferro chrome prices inch down on lower acceptance at higher offers

• Indian ferro chrome export prices drop w-o-w
  
  
• Samancor announces new European benchmark prices
  
  
• Stainless steel prices in India remain stable
  
  

Prices of Indian high-carbon ferro chrome (HC60%, Si:4%) inched down by INR 900/t ($11/t) w-o-w as compared to the assessment on 26 June. Prices decreased as the market observed less acceptance in higher rates following the conclusion of FACOR's auction on 28 June at INR 110,950/t ($1,329/t) exw.

Price trends in ferro chrome:

Domestic: High-carbon ferro chrome (HC60%, Si:4%) prices stood at INR 111,100/t ($1,330/t) exw-Jajpur on 3 July, as per BigMint's assessment. In the price range of INR 110,600-112,600/t ($1,324-1,348/t) exw, around 3,100 t of trades were reported to BigMint in the previous week.

Prices of high-carbon low-silicon ferro chrome (HC60%, Si:2%) also inched up by INR 500/t ($6/t) w-o-w to INR 119,000/t ($1,425/t) exw-Durgapur. However, there was a w-o-w drop of INR 1,000/t ($12/t) for low-carbon (C:0.1%) ferro chrome prices, reaching INR 228,000/t ($2,730/t) exw-Durgapur on 4 July.

Exports: Export prices to China decreased by 1.75 cents/lb w-o-w to around 98-99 cents/lb CNF Tianjin. At a price of 99 cents/lb CNF China, around 1,000 t of the material was booked last week. The price of exports to Japan and South Korea also decreased this week as overseas buyers were negotiating hard.

A trader who recently shipped some material to Europe at 104 cents/lb FOB informed BigMint, "Due to ocean freight turmoil and lack of containers availability, currently offers are being made on FOB basis only."

Weekly market summary

Higher offers post-FACOR auction find less acceptance: Vedanta-FACOR held three auctions last month, with bid prices showing an uptrend. The larger lot of 10-150 mm attained an H1 price of 110,950/t ($1,329/t) exw at the most recent auction on 28 June, up 2% from the auction on 17 June. Producers then modified their offerings, which ranged from INR 110,000-114,000/t ($1,317-1,365/t) exw. However, deals were settled at lower range up to INR 112,600/t ($1,348/t) exw levels.

Chinese ferro chrome prices drop: Ferro chrome (HC60%) prices in China fell by RMB 100/t ($14/t) w-o-w to RMB 9,150/t ($1,258/t) exw-Inner Mongolia. Unchanged tender prices of major stainless steel mills for July and weak demand had an influence on prices.

Additionally, sources indicated that Samancor had released new European benchmark prices at 152 cents/lb for third quarter of calendar year 2024 (Q3CY24), following Merafe's termination in the previous month. Although, it is yet to be seen whether these prices will get acceptance from the European market.

Japan's Nippon Steel Stainless also maintained the 160 cents/lb bid price for deliveries from July to September.

Stability in Indian stainless steel prices: Stainless steel prices of 304 grade remained steady w-o-w at INR 178,000/t ($2,132/t) exw-Mumbai. Buying interest also remained subdued and with fluctuating LME nickel prices, stainless steel costs are expected to remain rangebound or may even witness marginal decrease.

Outlook

The market appears to be volatile at the moment as the offers from producers seem to be in a wider range. So in the upcoming days, more clarity will emerge and there may be variations in prices.