India: Ferro chrome prices rise post-major auctions, market still awaits price clarity

Indian high-carbon ferro chrome (HC60%, Si:4%) prices rose by INR 2,300/t w-o-w as compared to the previous assessment on 13 December. Prices saw an uptick post-conclusion of Vedanta-FACOR's ferro chrome and OMC's chrome ore auction.

As per SteelMint's assessment on 20 December, high-carbon ferro chrome (HC60%, Si:4%) prices stood at INR 108,300/t exw-Jajpur. Around 700 t of deals were finalized in the price bracket of INR 107,000-110,000/t. Offers have risen to INR 110,000/t exw but deals have not been concluded as some players are holding inventories

Additionally, high-carbon low-silicon ferro chrome (HC 60%, Si: 2%) prices also witnessed a w-o-w increase of INR 1,400/t to stand at INR 116,150/t exw-Jajpur on 21 December.

Market insights over the week

Post auction scenario: Vedanta-FACOR's ferro chrome auction on 13 December got concluded at INR 107,100/t exw for the bigger lot of 10-150 mm. And at OMC's auction on 19 December, entire material of 39,500 t was sold with premium going up to 13%. Following this, producers tried to elevate the prices hoping to negate losses amid production cuts, however, there was still resistance from buyers and only need-based purchasing was done.

China's market: Ferro chrome (HC60%) prices in China stayed stable w-o-w at RMB 8,850/t ($1,239/t) exw-Inner Mongolia. Material availability was limited as there were reports of production cuts in Southern China. However, with demand at moderate level, there was no major effect on prices.

Continued downtrend in stainless steel sector: Stainless steel prices for the 304 grade fell by INR 2,000/t w-o-w to stand at INR 178,000/t exw-Mumbai. Reputable sources also claim that there is a shortage of the 316 series in the market, but since there was little demand, no impact was seen in the prices.

Outlook

With the ongoing production cuts, producers are trying to quote higher offers. Prices are expected to go a bit high in the upcoming days with restricted availability.