Indian ferro chrome prices inch up on supply shortage, rise in Chinese offers

Indian high-carbon ferro chrome (HC60%, Si:4%) prices increased by INR 700/t w-o-w, reflecting market optimism and a narrowing gap between bids and offers compared to the assessment on 6 December.

As per SteelMint's assessment on 13 December, high-carbon ferro chrome (HC60%, Si:4%) prices stood at INR 106,000/t exw-Jajpur. Around 1,100/t of trades were concluded in the price bracket of INR 105,000-106,000/t. Meanwhile, some producers have started quoting INR 108,000-110,000/t exw due to supply shortage anticipated in the coming days amid ongoing production cuts.

Additionally, high-carbon low-silicon ferro chrome (HC 60%, Si: 2%) prices experienced a w-o-w increase of INR 1,750/t, reaching INR 114,750/t exw-Jajpur on 14 December.

Weekly overview of the market

Optimistic outlook of the market: Despite the uncertainty in prices in recent weeks, there were minimal changes observed in the previous week. The gap between bids and offers improved, but the market primarily witnessed need-based purchasing. Most market participants were in a wait-and-watch mode, anticipating the results of FACOR's ferro chrome and OMC's chrome ore auction for clearer insights into prices.

Stainless steel prices hit a two-year low: Stainless steel prices continued their downward trend, declining by INR 5,000/t w-o-w for the 304 grade, with prices reaching INR 180,000/t exw-Mumbai. Reports of production cuts, driven by lower profit margins, contributed to this decline. The primary factor preventing a rise in ferro chrome prices is the industry's reliance on major buyers who are experiencing challenges. Additionally, there is a growing preference for imported stainless steel from South Korea, as it proves to be more cost-effective for producers.

China's market scenario: Ferro chrome (HC60%) prices in China recorded a marginal increase of RMB 100/t ($14/t) w-o-w, reaching RMB 8,850/t ($1,249/t) exw-Inner Mongolia. The market faced constraints in material supply as stainless steel mills were gearing up for winter storage. Despite this, there was limited downstream demand from stainless steel producers.

Outlook