India: Ferro chrome tags drop to 2-month low on bid-offer disparities, lower auction prices

• Bids at FACOR's auction fall by INR 1,600/t

  
  
  

• Baosteel cuts tender prices by $21/t for Nov
  
  

Indian high-carbon ferro chrome (HC60%, Si:4%) prices fell by INR 1,100/tonne (t) ($13/t) w-o-w compared to the previous assessment on 6 November. As per BigMint's assessment 13 November, Indian high-carbon ferro chrome (HC60%, Si:4%) prices were at INR 108,900/t ($1,290/t) exw-Jajpur. Offers are at a 2-month low, as similar levels were last seen in mid-September 2024. Deals of around 600 t were reported to BigMint this week, in the range of INR 110,500-110,800/t ($1,309-1,313/t) exw.

Prices declined, as bid-offer disparities plagued the market. Lower bids at the latest Vedanta-FACOR auction also contributed to the price drop.

For high-carbon, low-silicon ferro chrome, prices dropped by INR 1,300/t ($15/t) w-o-w to INR 114,700/t ($1,359/t) exw-Jajpur. Similarly, low-carbon (C:0.1%) ferro chrome prices fell by INR 1,000/t ($12/t) w-o-w to INR 211,000/t ($2,500/t) exw-Durgapur.

Market summary

FACOR's auction sees lower bids: A mismatch in bids and offers emerged this week, which was later strengthened by a drop in bids at FACOR's ferro chrome auction on 11 November. The larger lot of 10-150 mm material fetched an H1 price of INR 108,900/t ($1,290/t) exw, which was INR 1,600/t ($19/t) lower than the H1 price seen in the previous auction on 30 September.

A major domestic ferro chrome producer recently informed BigMint, "We had to bring down our offers from INR 115,000/t ($1,362/t) exw to around INR 110,000/t ($1,303/t), as there was no interest from buyers."

Another seller said, "There is no buying interest in the market, as consumption has declined. China's stimulus has failed to make a major impact."

Prices drop in China: Ferro chrome (HC60%) prices in China inched down by RMB 100/t ($14/t) w-o-w to RMB 8,000/t ($1,105/t) exw-Inner Mongolia. Demand was low, as most steel mills have finalised their purchases and were not in the market. Stainless steel demand might not see any improvements by year-end, and the price pressure on ferro chrome is expected to continue.

Additionally, after TISCO and Tsingshan, Baosteel reduced its ferro chrome tender prices for this month by RMB 150/t ($21/t) to RMB 8,145/t ($1,125/t).

Subdued demand continues in stainless steel: Prices of 304-grade stainless steel hot-rolled coils (HRCs) dipped by INR 1,000/t w-o-w ($12/t) to INR 179,000/t ($2,121/t) exw-Mumbai, impacted by need-based buying and weak demand.

However, one of India's leading stainless steel coil producers raised prices of 200-series coils due to a drop in imports and increased production costs. Prices of CRCs went up by INR 2,000/t ($24/t) and HRCs by INR 4,000/t ($47/t), effective 13 November.

This sector is expected to stay subdued in the days ahead, with moderate trading activities.

Outlook

Prices are expected to stay under pressure amid cautious trading. The latest chrome ore auction from the Odisha Mining Corporation (OMC), scheduled for next week, will further determine the price trajectory for the upcoming days.

Additionally, the deadline for BIS certification registration has passed, with no news of an extension, which is causing concern among buyers of special-grade ferro chrome. This variant is used in limited quantities in India, and most producers are unwilling to manufacture such small volumes. It remains to be seen how both the government and buyers will address this situation.