India: Ferro chrome prices stabilise amid consistent trades

• TISCO, Baosteel reduce Oct'24 tender offers
  
  
• Stainless steel prices rise but demand sluggish
  
  

Indian high-carbon ferro chrome (HC60%, Si:4%) prices remained stable last week, with a marginal decrease of INR 300/t ($4/t) from the previous assessment on 1 October. Prices were steady, as no major movements were observed in the market and routine spot trades were concluded.

Domestic prices inch down: Indian high-carbon ferro chrome (HC60%, Si:4%) prices stood at INR 110,700/t ($1,318/t) exw-Jajpur, as per BigMint's assessment on 9 October. Last week, trades of around 3,000 t were recorded by BigMint in the price range of INR 110,000-111,000/t ($1,310-1,322/t) exw.

However, high-carbon low-silicon ferro chrome experienced a drop of INR 800/t ($10/t) w-o-w to INR 116,000/t ($1,382/t) exw-Jajpur, while the low-carbon (C:0.1%) variant declined by INR 3,750/t ($45/t) w-o-w to INR 211,500/t ($2,519/t) exw-Durgapur.

Export offers remain stable: Export prices were unchanged last week, at 93 cents/pound (lb) CNF Tianjin and 97 cents/lb CNF Tokyo.

Market summary

Regular trades occur at prevailing offers: Buyers showed acceptance towards post-auction offers over the past two weeks. This was reflected in spot trade volumes as well, so prices remained largely stable.

"Our offer is at INR 112,000/t ($1,334/t) exw, as we are cutting down on production", a key domestic producer recently informed BigMint.

Another producer stated that their cost of production had increased, but there was demand at lower prices only.

Additionally, export demand was limited. An overseas buyer reported that global stainless steel demand is weak, though slightly better in the US compared to last year. In China, Korea, Japan, and the EU, demand remains paltry, primarily because China has produced an excess of stainless steel, which has disrupted the demand-supply balance.

Tender prices fall in China: Following Tsingshan's price cut for October 2024, Baosteel and TISCO reduced their October tender prices by RMB 400/t ($57/t) to RMB 8,295/t ($1,173/t) and RMB 8,095/t ($1,145/t), respectively.

China's stimulus had no immediate impact on the market, and spot trades were mainly influenced by tender prices.

Stainless steel prices improve: Prices of 304-grade hot-rolled coils (HRCs) saw an increase of INR 3,000/t ($36/t) w-o-w to INR 186,000/t ($2,215/t) exw-Mumbai, fuelled by a price hike by major producers. Despite this, demand and tradable levels remained low due to the ongoing festive season.

Outlook

BigMint estimates prices to stay range-bound in the near term, with slight variations.