India: Ferro chrome prices rise amid improving market dynamics

• China's prices maintain stability
  
  
• Stainless steel prices remain stable
  
  

Indian high-carbon ferro chrome (HC60%, Si:4%) prices increased by INR 1,100/tonne (t) ($13/t) w-o-w compared to the previous assessment on 28 August. The price rise was driven by the market's continued acceptance of higher offers and the execution of routine trades.

Price trends

Uptrend in domestic prices: Indian high-carbon ferro chrome (HC60%, Si:4%) prices were at INR 107,800/t ($1,284/t) exw Jajpur, as per BigMint's assessment on 4 September. Approximately 1,400 t of deals were finalised last week within the price range of INR 105,500-110,500/t ($1,256-1,316/t) exw.

Meanwhile, high-carbon low-silicon ferro chrome (HC60%, Si:2%) prices increased by INR 1,500/t ($18/t) w-o-w to INR 114,500/t ($1,364/t) exw-Jajpur. However, low-carbon ferro chrome (C:0.1%) prices saw a slight decline, decreasing by INR 500/t ($6/t) w-o-w to INR 219,500/t ($2,614/t) exw-Durgapur on 5 September.

Export prices remain stable: Export prices of ferro chrome remained unchanged last week. Prices stood at 95 cents/lb CNF Tianjin for exports to China. For Japan, prices were 100 cents/lb CNF Tokyo, and for South Korea, they were 99 cents/lb CNF Busan.

Market recap

Market accepts post-auction offers: Market sentiment shifted positively after higher bids were recorded at OMC's auctions, but real momentum was gained following FACOR's auction, where a larger lot was bid at INR 106,200/t ($1,625/t). Additionally, some producers are holding back from the market, anticipating stronger demand in the near term due to India's upcoming festive season. This optimism, along with concerns over a potential short supply, has pushed buyers to accept the current price levels. According to most sellers, the price range of INR 107,000-108,000/t ($1,274-1,286/t) remained the tradable level last week.

A major domestic producer told BigMint: "We're not offering as of now, but if any inquiries arrive, we'll quote at INR 110,000-110,500/t ($1,310-1,316/t) exw."

Stable market in China: Ferro chrome (HC60%) prices in China remained unchanged at RMB 8,600/t ($1,211/t) w-o-w exw-Inner Mongolia. However, trades in the spot market remained limited amid weaker demand for stainless steel and majority of the market participants were in wait-and-watch mode.

Stainless steel prices remain stable: Stainless steel prices of the 304 grade remained unchanged w-o-w at INR 183,000/t ($2,179/t) exw Mumbai. Prices maintained stability despite a decline in LME nickel prices. In the near term, some price corrections may occur, with trading activities expected to remain at moderate levels.

Outlook

According to current market indications, prices are likely to remain range-bound in the coming days, with slight variations expected. FACOR's next auction, scheduled for tomorrow, is anticipated to provide further clarity on price trends.