India: Ferro chrome prices remain stable; OMC auction results awaited

• Chinese market stable, yet oversupply continues
  
  
• Stainless steel prices decline on weak demand
  
  

Indian high-carbon ferro chrome (HC60%, Si:4%) prices were steady last week, with a slight drop of INR 300/tonne (t) ($4/t) w-o-w as compared to the previous assessment on 9 October. Prices were stable, as market sentiments remained unchanged and routine trade was carried out.

Stability in domestic, export prices

Indian high-carbon ferro chrome (HC60%, Si:4%) prices were at around INR 110,400/t ($1,314/t) exw-Jajpur, as per BigMint's assessment on 16 October. Trades of approximately 1,700 t were recorded by BigMint last week in the price range of INR 110,000-111,500/t ($1,309-1,327/t) exw.

Prices were unchanged w-o-w for high-carbon low-silicon ferro chrome at INR 116,000/t ($1,381/t) exw-Jajpur. Around 200 t of material was traded last week at INR 115,500-116,000/t ($1,375-1,381/t) exw.

For low-carbon (C:0.1%) ferro chrome, prices declined by a marginal INR 500/t ($6/t) w-o-w to INR 211,000/t ($2,511/t) exw-Durgapur.

For exports as well, prices remained unchanged last week. A major Indian seller catering to the sea-borne market informed BigMint, "As of now, inquiries are lower in China and Europe. In Japan, stainless steelmakers have enough ferro chrome inventory, and in South Korea, demand for stainless steel is poor."

Market updates

Steadiness in trades, rise in OMC's base price: Ferro chrome prices showed signs of stability, as trades were concluded at the current market rates.

The latest chrome ore auction by the Odisha Mining Corporation (OMC) is scheduled for 18 October. The offered quantity is almost the same m-o-m at 33,500 t. However, base prices have gone up by INR 2,390-4,880/t ($28-58/t) for most grades (42-54%), likely due to tight chrome ore supplies and a rise in ferro chrome prices in October.

Stable market in China: Ferro chrome (HC60%) prices in China were unchanged w-o-w at RMB 8,300/t ($1,165/t) exw-Inner Mongolia. The impact of the Chinese stimulus is yet to be seen, with the oversupply situation still pronounced. Sources informed that in October, high-carbon ferro chrome production is likely to drop below 700,000 t, as stainless steel mills cut bidding prices, leading to losses for producers. Despite maintenance shutdowns in Inner Mongolia, raw material stockpiles and falling chrome ore costs are helping to reduce expenses. Pessimism in the market has eased, possibly slowing production cuts. This could provide temporary relief to India's ferro chrome market, potentially stabilising export demand and prices.

Drop in Indian stainless steel prices: Stainless steel prices for 304-grade hot-rolled coils (HRCs) fell by INR 4,000/t ($48/t) w-o-w to INR 182,000/t ($25,539/t) exw-Mumbai. Weak demand, along with a decline in nickel prices on the London Metal Exchange (LME), were the key factors for the price drop. The sentiments in this sector have been the same for the past weeks, and in the coming days, prices are expected to stay range-bound.

Outlook

OMC's chrome ore auction scheduled for tomorrow will determine the price trajectory in the days ahead.