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India: Ferro chrome prices stable on subdued market

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Ferro Chrome

BigMint Bureau

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22 Aug 2024, 17:49 IST

India: Ferro chrome prices stable on subdued market

Bids rise m-o-m at OMC's chrome ore auction

Tsingshan lowers September tender prices

Indian high-carbon ferro chrome (HC60%, Si:4%) prices remained unchanged w-o-w in comparison to the previous assessment on 14 August. Prices remained stable as market operations were quiet last week and majority of the people were awaiting auction outcomes of OMC.

Trends in prices

Domestic: According to BigMint's assessment on 21 August, Indian high-carbon ferro chrome (HC60%, Si:4%) prices were INR 103,100/t ($1,228/t) exw-Jajpur. There were very few deals concluded in the previous week.

High-carbon low-silicon ferro chrome (HC60%, Si:2%) prices saw a marginal uptick of INR 100/t ($1/t) w-o-w to INR 109,000/t ($1,298/t) exw-Jajpur. Low-carbon (C:0.1%) ferro chrome prices stayed steady w-o-w at INR 219,000/t ($2,609/t) exw-Durgapur on 22 August.

Export: There was no major movement in export prices as well and prices were stable w-o-w at 95.5 cents/lb CNF-Tianjin and 100 cents/lb CNF-Tokyo.

Market summary

OMC's auction influence: Market participants were awaiting the auction results from OMC last week. On 20 August, an auction was held for 54,800 tonnes (t) of chrome ore and 5,850 t of ferro chrome. The entire quantity of chrome ore was sold, with bid prices increasing by 2-26% (INR 508-4,946/t) for most grades compared to the July auction. Premiums are ranging from 20-84% (INR 3,300-17,400/t) were also achieved for grades above 42%.

However, ferro chrome auction saw a bit of contrasting outcome as 2,000 t out of 4,950 t high-carbon (HC) ferro chrome (Cr: 60-64%, 10-100mm) was sold at base price of INR 100,000/t exw. With reference to ferro chrome auction, a trader informed BigMint, "The bid price might not be a true reflection of the market as freight charges are higher than other plants."

China's market scenario: Ferro chrome (HC60%) prices in China were unchanged w-o-w at RMB 8,800/t ($1,234/t) exw-Inner Mongolia. Additionally, Tsingshan released its September tender prices at RMB 8,695/t ($1,219/t) DAP, including taxes, down by RMB 200/t ($28/t) m-o-m. Demand in the Chinese domestic market remained weak. In fact, with the recent decrease in tender prices, the market is likely to remain under pressure in the coming days.

Slight hike in stainless steel prices: Stainless steel prices of 304 grade HRC stood at INR 181,000/t ($2,156/t) exw-Mumbai, an uptick of INR 2,000/t ($24/t) w-o-w. This was driven by an increase in LME nickel prices. In the near term, prices are likely to stay stable. However, domestic trades may remain sluggish as the festive season is approaching.

Outlook

Following OMC's auction, ferro chrome offers have increased. The market's acceptance of these higher offers will dictate the price direction in the coming days. Additionally, the impact of the recent drop in Chinese tender prices on the domestic market remains to be seen.