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India: Ferro chrome prices stable amidst static market conditions, moderate demand

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Ferro Chrome

BigMint Bureau

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6 Jun 2024, 18:06 IST

India: Ferro chrome prices stable amidst static market conditions, moderate demand

Bid prices drop in Vedanta-FACOR auction

Stainless steel prices edge down w-o-w

Prices of Indian high-carbon ferro chrome (HC60%, Si:4%) remained unchanged w-o-w from the previous assessment on 29 May 2024. Prices remained consistent as demand remained moderate and most market players were awaiting the outcome of FACOR's auction last week.

High-carbon ferro chrome (HC60%, Si:4%) prices stood at INR 106,000/t ($1,270/t) exw-Jajpur on 5 June, according to BigMint's assessment. Last week, around 3,000 t of trades were concluded in the range of INR 104,000-107,000/t ($1,246-1,282/t).

High-carbon (HC60%, Si:2%) low-silicon ferro chrome prices remained steady as well, with a slight decrease of INR 700/t ($8/t) w-o-w to INR 112,900/t ($1,353/t) exw-Jajpur. Stability was seen in low-carbon (C:0.1%) prices as well, which inched up by INR 400/t ($5/t) w-o-w to INR 232,000/t ($2,779/t) exw-Durgapur on 6 June.

Factors keeping prices stable

Auction-driven market dynamics: During the previous week, market participants were waiting for Vedanta-FACOR's auction results. Subdued trading at higher prices was reflected in the auction on 5 June, with the larger lot of 10-150 mm fetching an H1 price of INR 105,700/t ($1,264/t). Additionally, bid prices fell by INR 500/t ($6/t) from the last auction on 8 May.

Some domestic producers chose to reduce production even as some others decided to hold off on issuing offers, considering poor demand.

"Most producers are holding offers along with a major supplier so there is anticipation in the market that prices can go up," a buyer told BigMint.

Firm Chinese prices: Prices for ferro chrome (HC60%) in China were stable w-o-w at RMB 9,150/t ($1,263/t) exw-Inner Mongolia. Since the majority of the material was acquired on a term contract basis, there was soft demand in the spot market.

Stainless steel prices drop w-o-w: Prices for 304 grade stainless steel dropped INR 3,000/t ($36/t) w-o-w to INR 179,000/t ($2,144/t) exw-Mumbai. The $1,815/t w-o-w decline in LME nickel prices was the cause of the price decline. Following the elections, there has not been much buying activity, and consumers are expecting further price correction.

Outlook

Given the current market conditions, prices are likely to remain under pressure in the near term.