India: Ferro chrome prices steady amid limited market movement

• Need-based buying weighing on market
  
  
• Chinese domestic prices edge down
  
  

Indian high-carbon ferro chrome (HC60%, Si:4%) prices were stable last week, moving down slightly by INR 100/t ($1/t) w-o-w in comparison to the previous assessment on 4 December. Prices stayed steady as market players adjusted their approach - most of the sellers weren't offering and buyers bought on as-needed basis.

As per BigMint's assessment on 11 December, Indian high-carbon ferro chrome (HC60%, Si:4%) prices were INR 106,000/t ($1,249/t) exw-Jajpur. Around 250 t of deals were reported to BigMint last week in the price range of INR 105,000-109,000/t ($1,237-1,285/t) exw.

Stability was seen in high-carbon, low-silicon ferro chrome prices as well at INR 113,250/t ($1,335/t) exw-Jajpur. For this, approximately 200 t of trades were finalised in INR 113,000-113,800/t ($1,332-1,341/t) price bracket. However, low-carbon (C:0.1%) ferro chrome prices experienced a drop of INR 2,800/t ($33/t) w-o-w to INR 207,500/t ($2,445/t) exw-Durgapur.

Market this week

Cautious approach amongst market players: Ferro chrome prices have been under pressure and recently touched a 3-month low. So in accordance with that, many of the domestic sellers reduced their output as selling prices were not aligning with their cost of production, specially due to the higher chrome ore prices. In reference to it, a seller informed BigMint, "Producers who are having captive mines are selling in the market, except that nothing else is happening."

Buyers on the other hand, opted to go for need-based buying with an expectation of further drop in prices.

Decline in China's prices: Ferro chrome (HC60%) prices in China came down by RMB 100/t ($14/t) w-o-w to RMB 7,400/t ($1,019/t) exw-Inner Mongolia. With demand being sluggish, reducing supply became the primary option for the sellers. Along with it, little expectation of significant improvement in downstream demand by the year-end, price pressures are expected to continue and ferro chrome market is likely to face challenges if these conditions persist.

Subdued demand in Indian stainless steel segment: Stainless steel prices for 304 grade HRC were steady w-o-w at INR 178,000/t ($2,098/t) exw-Mumbai. However, demand and trading activities were silent, as market was mainly driven by need-based purchasing. In the near term, we may see further correction in prices and market players are anticipating pick up in demand after January 2025.

Outlook

In view of existing market conditions, prices are likely to stay under pressure in the days ahead. However, a sharp decline is less likely.