India: Ferro chrome tags plunge to over 1-year low amid fall in auction bids, tender prices

• Bids fall by $51/t at FACOR's latest auction
  
  
• TISCO reduces Jan'25 tender price by $55/t
  
  

Indian high-carbon ferro chrome (HC60%, Si:4%) prices fell by INR 2,800/tonne (t) ($33/t) w-o-w in comparison to the previous assessment on 1 January 2025. Prices plunged to their lowest point since July 2023, mainly due to lower bids at Vedanta-FACOR's latest auction and lower realisations in the export segment.

As per BigMint's assessment on 8 January, Indian high-carbon ferro chrome (HC60%, Si:4%) prices were at INR 99,300/t ($1,156/t) exw-Jajpur. Low-silicon ferro chrome stood at INR 106,300/t ($1,237/t) exw-Jajpur. Both prices were down by INR 1,700/t ($20/t) w-o-w.

Meanwhile, low-carbon (C:0.1%) ferro chrome prices were unchanged w-o-w at INR 209,250/t ($2,435/t) exw-Durgapur. Sources indicated that the grade saw robust demand in the export market.

Deals for around 3,300 t were recorded by BigMint, within the price bracket of INR 99,200-102,500/t ($1,155-1,193/t) exw.

Market scenario

FACOR's auction sees persistent downtrend: The latest auction by Vedanta-FACOR on 6 January saw the larger lot of 10-150 mm material booked at INR 99,200/t ($1,155/t) exw. A significant drop of INR 4,400/t ($51/t) was observed as compared to the previous auction on 20 December 2024.

Prices fell for the fifth consecutive time since the auction on 30 September 2024. This persistent downtrend has exerted pressure on ferro chrome prices. Conversely, a buyer said, "FACOR's auction results reflect prevailing price trends, and tags should be at these levels."

Additionally, a seller recently informed BigMint, "Most ferro chrome suppliers are booked out, so I doubt there will be any panic selling. Export demand, majorly from the Europe and US, is decent."

Although the export segment witnessed moderate demand, prices fell w-o-w. For China, offers dropped by 4 cents/lb w-o-w to 77 cents/lb CNF, much lower than domestic tags. As a result, sellers witnessed lower realisations on export orders.

Tender prices continue to drop in China: After Tsingshan's reduced tender prices for January, TISCO also cut theirs by RMB 400/t ($55/t) m-o-m to RMB 6,795/t ($927/t) DAP, including taxes. Subdued demand, along with sufficient supplies in the Chinese domestic market, might have contributed to this price drop.

Meanwhile, domestic prices (HC60%) were steady w-o-w at RMB 7,200/t ($982/t) exw-Inner Mongolia. Steel mills, particularly in southern China, adjusted their output based on market trends, and overall production stayed below expectations, leading to sluggish demand for ferro chrome.

Stainless steel market remains firm: Prices of 304-grade stainless steel hot-rolled coils (HRCs) were unchanged w-o-w at INR 178,000/t ($2,072/t) exw-Mumbai. Limited buying activities were seen, as the market has just resumed operations following the New Year holidays. In the coming days, sources are expecting an uptick in prices, as they are hopeful of a pick-up in trading activities.

Outlook

Prices are likely to remain under pressure in the days ahead, as bid-offer disparities are still weighing on the market.