India: Ferro chrome prices stable as market eyes post-OMC auction scenario

• OMC auction bids rise up to 11% m-o-m
  
  
• TISCO Dec tender prices drop $41/t
  
  

Indian high-carbon ferro chrome (HC60%, Si:4%) prices remained steady w-o-w, going down by a slight INR 400/tonne ($5/t) w-o-w as compared to the previous assessment on 13 November. Prices were stable as majority of the market participants were awaiting the chrome ore auction results of Odisha Mining Corporation (OMC).

As per BigMint's assessment on 20 November, Indian high-carbon ferro chrome (HC60%, Si:4%) prices were INR 108,500/t ($1,285/t) exw-Jajpur. Around 1,600 t of deals were reported to BigMint last week within the price bracket of INR 108,000-109,500/t ($1,279-1,296/t) exw.

For high-carbon, low-silicon ferro chrome, prices went down marginally by INR 200/t ($2/t) w-o-w to INR 114,500/t ($1,356/t) exw-Jajpur. Approximately 250 t of trade was carried out in this material last week at INR 113,500-114,000/t ($1,344-1,350/t) exw. Additionally, low-carbon (C:0.1%) ferro chrome prices also edged down by INR 500/t ($6/t) w-o-w to INR 210,500/t ($2,492/t) exw-Durgapur.

Market highlights

Auction scenario: The chrome ore auction continues to be a major determining factor for ferro chrome prices. With the auction scheduled on Wednesday, 20 November, most of the market participants were eagerly awaiting its results.

At the auction held yesterday, the entire 33,600 t of chrome ore got sold out with bids going up m-o-m by 1-11% (INR 448-2633/t) for majority of the grades. Also, bids increased by 1-67% (INR 200-15,500) above the base price.

Last week, a seller informed BigMint,"Deals are happening in the market at INR 108,000/t ($1,278/t) levels and there is resistance from buyers towards the higher offers. Market sentiments are weak. Plus, there are no new inquiries either." The market may get a clearer picture in the upcoming days as sellers may adjust their offers following this auction.

Subdued Chinese market: Ferro chrome (HC60%) prices in China inched down by RMB 100/t ($14/t) w-o-w to RMB 7,900/t ($1,091/t) exw-Inner Mongolia. Taiyuan Iron and Steel Corporation (TISCO) also brought down its December 2024 ferro chrome tender prices by RMB 300/t ($41/t) m-o-m to RMB 7,645/t ($1,056/t) DAP, including taxes.

Lower demand in the market along with surplus production continued to put pressure on ferro chrome prices.

Limited movement in India's stainless steel sector: Prices of the stainless steel 304 grade HRC were unchanged w-o-w at INR 179,000/t ($2,119/t) exw-Mumbai. Elections in the Mumbai region kept market movements limited. This sector has been stagnant over the past many weeks and price variations have mainly occurred due to changes in LME nickel prices. Considering the current market scenario, trading activities are expected to stay subdued in the days ahead.

Outlook

Vedanta-FACOR's ferro chrome auction is scheduled tomorrow. So the results of that, along with post-OMC auction offers from sellers, will further determine the price trajectory.