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Indian ferro chrome prices drop post-Vedanta-FACOR auction

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Ferro Chrome

BigMint Bureau

287 Reads

11 Apr 2024, 18:19 IST

Indian ferro chrome prices drop post-Vedanta-FACOR auction

FACOR auction reaches INR 110,200/t levels

Baosteel lifts April ferro chrome tender prices

Indian stainless steel prices decline w-o-w

Prices of Indian high-carbon ferro chrome (HC60%, Si:4%) decreased by INR 2,300/tonne ($28/t) w-o-w when compared to the previous assessment on 3 April. Prices dropped following conclusion of Vedanta-FACOR's auction on 5 April as the market shifted prices based on the same.

According to BigMint's assessment, the price of Indian high-carbon ferro chrome (HC60%, Si:4%) was INR 109,900/t ($1,318/t) exw-Jajpur on 10 April. Approximately 3,400 tonne (t) of trades were completed last week in the INR 108,000-110,000/t ($1,295-1,319/t) price range.

In addition, there was a w-o-w decrease of INR 1,500/t ($18/t) in prices of high-carbon low-silicon ferro chrome (HC60%, Si:2%) to INR 117,200/t ($1,406/t) exw-Jajpur on 11 April.

Market overview

Market reaction to FACOR's auction: On 5 April, Vedanta-FACOR held a ferro chrome auction, with prices reaching INR 110,200/t ($1,322/t) exw. Following this, prices hovered in this range as producers revised their offers. Prices got acceptance in the market as proved by the recent trades.

An official at a key ferro chrome purchaser told BigMint that while his company was not currently buying, but, if it did, then it would have preferred INR 108,000/t ($1,295/t) price levels. I also think chrome ore prices may go down, the official further said.

China market scenario: Prices of ferro chrome (HC60%) decreased by RMB 100/t ($14/t) w-o-w in China to RMB 8,950/t ($1,237/t) exw-Inner Mongolia. Although there were indications of rising chrome ore prices, ferro chrome prices did not increased because of the unfavorable conditions in the stainless steel market.

The April ferro chrome tender prices were also announced by Baosteel last week. These increased by RMB 500/t ($69/t) m-o-m to RMB 8,995/t ($1,243/t) DAP, including taxes.

Trends in India's stainless steel sector: Prices of 304 grade stainless steel decreased by INR 2,000/t ($24/t) w-o-w, to INR 173,000/t ($23,906/t) exw-Mumbai. According to reports, the LME nickel prices may have an immediate impact on pricing, but the market as a whole is not expected to recover until after the Indian general elections.

Outlook

In the days ahead, there might be additional price adjustments but up to a certain level. The outcome of OMC's chrome ore auction this month will play a crucial role in shaping the market's direction.