India: Ferro chrome prices inch up amid early signs of market recovery

• A major domestic producer halts offering
  
  
• Slight growth in China's domestic prices
  
  

Indian high-carbon ferro chrome (HC60%, Si:4%) experienced a slight uptick of INR 800/t ($10/t) w-o-w as compared to the previous assessment on 5 June. There were reports of production cuts among major suppliers so offers from remaining stayed on the higher side.

As per BigMint's assessment on 12 June, high-carbon ferro chrome (HC60%, Si:4%) prices stood at INR 106,800/t ($1,278/t) exw-Jajpur. Around 5,500 t of deals were reported to BigMint in the prior week within price bracket of INR 105,500-108,000/t ($1,236-1,293/t). Out of total recorded trades, only 360 t were concluded at INR 108,000/t ($1,293/t).

High-carbon (HC60%, Si:2%) low-silicon ferro chrome prices rose by INR 1,700/t ($20/t) w-o-w to INR 114,600/t ($1,372/t) exw-Jajpur. However, the case was different with low-carbon (C:0.1%) prices as well, declining by INR 3,000/t ($36/t) w-o-w to INR 229,000/t ($2,741/t) exw-Durgapur on 13 June.

Market trends this week

Offers rise amid limited supplies: A significant ferro chrome producer in the domestic Indian market paused its offerings in the last few weeks. Reasons for it could be lower realisations or change in strategies. As per insiders, they're now mostly exporting to Europe, as realisations are higher than the domestic market.

Following this, a hike in offers were seen from other producers but it would only be clear in the coming days whether or not the market will accept it. Some producers also opted for production cuts owing to continued subdued conditions.

A producer told BigMint, "I sold some material at INR 105,750/t ($1,266/t) last week, but I've decided not to quote at those levels and my current offer price is INR 108,000/t ($1,293/t)."

Price uptick in China: Ferro chrome (HC60%) prices in China experienced an uptick of RMB 100/t ($14/t) w-o-w to RMB 9,250/t ($1,276/t) exw-Inner Mongolia. The price increase was due to the increase in chrome ore prices. China's ferro chrome output also reached 0.81 mnt in May and 3.5 mnt in January-May 2024, up 27% y-o-y.

Although the demand from stainless steel plants remained less which was evident in the unchanged tender prices of June.

Indian stainless steel prices witness stability: Prices of 304 grade stainless steel remained same w-o-w at INR 179,000/t ($2,143/t) exw-Mumbai. Prices in this industry may drop further, and LME nickel prices appear to be unstable as well. Additionally, a major stainless steel company is currently operating on only 60% of its capacity.

Outlook

Producers have slightly raised their offers, signalling a price uptrend in the coming days. The market's response to these offers remains to be seen.