India: Ferro chrome prices range-bound as market awaits OMC's auction outcome

• Bid-offer disparity continues to influence market
  
  
• Marginal hike in stainless steel prices
  
  

Indian high-carbon ferro chrome (HC60%, Si:4%) prices remained stable w-o-w compared to the previous assessment on 9 August. Prices held steady as regular trades occurred in the market last week. However, the previous trend of bid-offer disparity continued to influence the market.

Price trends

Domestic: Indian high-carbon ferro chrome (HC60%, Si:4%) prices were at INR 103,100/t ($1,229/t) exw-Jajpur, as per BigMint's assessment on 16 August. Around 3,300 t of deals were closed last week within the price range of INR 102,000-104,000/t ($1,215-1,239/t) exw.

Low-carbon (C:0.1%) ferro chrome prices remained stable too w-o-w at INR 219,000/t ($2,608/t) exw-Durgapur. Meanwhile, high-carbon low-silicon ferro chrome (HC60%, Si:2%) prices declined by INR 2,100/t ($25/t) w-o-w to INR 108,900/t ($1,297/t) exw-Jajpur.

Export: No major movement was seen in the export market last week and prices stayed unchanged at 95.5 cents/lb CNF Tianjin and 100 cents/lb CNF Tokyo.

Weekly market recap

Cautious approach leading to need-based buying: The majority of buyers remained cautious in procuring materials due to the continuous decline in prices over the past few weeks. As a result, producers adjusted their strategies, selling materials at previously offered prices which were lowered. One major producer has temporarily halted offers, as operating at current market prices was not feasible. Another producer told BigMint, "I'm not offering currently, but if I were, it would be at INR 104,000/t ($1,239/t) ex-works. Considering the responses from buyers, it's better to focus on the export market at the moment."

Chinese prices stable: Ferro chrome (HC60%) prices in China remained unchanged w-o-w at RMB 8,800/t ($1,227/t) ex-works Inner Mongolia. Although, material was plentiful in the domestic market, steady chrome ore prices kept fluctuations to a minimum. Reports also indicated that producers in Southern China were eager to increase production due to lower hydropower costs during the wet season, which could put upward pressure on prices in the coming days.

Modest hike in Indian stainless steel prices: Stainless steel prices of 304 grade HRC inched up by INR 1,000/t ($12/t) w-o-w to INR 179,000/t ($2,132/t) exw-Mumbai. This was the third consecutive hike majorly influenced by price increase by India's leading coil producer. In the near-term, its prices are expected to stay range-bound due to stable nickel prices.

Outlook

Odisha Mining Corporation's (OMC's) auction for chrome ore and ferro chrome is scheduled on 20 August which will provide further clarity on prices.