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India: Ferro chrome prices remain stable w-o-w; market awaits OMC auction outcome

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Ferro Chrome

BigMint Bureau

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19 Sep 2024, 19:11 IST

India: Ferro chrome prices remain stable w-o-w; market awaits OMC auction outcome

Base prices of OMC's chrome ore auction rise m-o-m

China's prices hold steady amid market inactivity

Indian high-carbon ferro chrome (HC60%, Si:4%) prices remained stable w-o-w, moving up by a marginal INR 300/tonne (t) ($4/t) w-o-w. Prices were steady, as market sentiments remained the same throughout the week. Additionally, most market participants held back from deals, choosing to wait for the outcome of OMC's latest chrome ore auction.

Trends in pricing

Domestic sector sees mixed trends: Indian high-carbon ferro chrome (HC60%, Si:4%) prices were at INR 107,100/t ($1,280/t) exw-Jajpur, up by a modest INR 300/t ($4/t) w-o-w, as per BigMint's assessment on 18 September. Deals of around 400 t were concluded this week within the price bracket of INR 107,000-107,500/t ($1,279-1,285/t) exw.

Meanwhile, high-carbon low-silicon ferro chrome prices slid by INR 1,100/t ($13/t) w-o-w to INR 113,400/t ($1,355/t) exw-Jajpur as buyers drove hard bargains. Low-carbon ferro chrome (C:0.1%) prices also dropped by INR 1,500/t ($18/t) w-o-w to INR 216,500/t ($2,588/t) exw-Durgapur on 19 September.

Export prices remain unchanged: Export prices to China inched up by a slight 0.75 cents/pound (lb) w-o-w to 95 cents/lb CNF Tianjin. For exports to Japan and South Korea, prices were unchanged w-o-w at 100 cents/lb CNF Tokyo and 98 cents/lb CNF Busan, respectively.

Market highlights

Prices on firm ground: Ferro chrome prices have remained range-bound over the past few weeks, barring some fluctuations. The market seems to have stabilised at the current rates. However, bids for bulk purchases are at around INR 104,000-105,000/t ($1,243-1,255/t) exw. A producer recently informed BigMint, "For smaller quantities, we are offering material at INR 108,000/t ($1,291/t) exw, and for larger volumes, we are closing deals at INR 107,000/t ($1,279/t) exw."

OMC's chrome ore auction sees rise in base prices: OMC's chrome ore auction, scheduled for tomorrow, will determine the future trajectory of ferro chrome prices. Base prices for this month have gone up by 7-13% (INR 1,188-2,468) for most grades and 72% (INR 4,715) for grades below 40%. However, the offered volume has dropped significantly by 22,400 t m-o-m.

Chinese prices remain steady: Ferro chrome (HC60%) prices in China were steady at RMB 8,600/t ($1,218/t) exw-Inner Mongolia. The domestic Chinese market remained silent this week due to the Mid-Autumn Festival holidays and weak demand. Additionally, there were reports of production cuts and maintenance work being undertaken, but these did not have a major impact on the supply chain.

Stainless steel market to see moderate trading: Stainless steel prices for the 304 grade were unchanged w-o-w at INR 182,000/t ($2,175/t) exw-Mumbai. With the festive season approaching, trade activities in this segment are expected to stay at moderate levels. There might also be fluctuations in LME nickel prices.

Outlook

In the coming days, prices are expected to stay steady with some variations. FACOR's ferro chrome auction, which is scheduled to take place soon, and OMC's chrome ore auction, to be held on 20 September, will provide further clarity on prices.