India: Bids rise at Vedanta-FACORs ferro chrome auction

• Improved demand, surging ore costs support prices
  
  
• Vedanta-FACOR's ferro chrome production rose by 21% y-o-y in FY'26
  
  

At Vedanta-FACORs ferro chrome auction today, bids increased across major grades, reflecting relatively firm domestic sentiment despite cautious stainless steel market sentiment.

The larger ferro chrome lumps lot (Cr:57% min, 10-150 mm) fetched a final price of INR 119,700/t ($1,236/t) exw against a base price of INR 117,800/t ($1,217/t), up by INR 1,900/t ($20/t). Compared to the previous auction held for grades 56% on 24 April, the larger lot price increased by INR 2,900/t ($29/t) from INR 116,800/t ($1,206/t) exw.

Meanwhile, the smaller lumps lot closed at INR 121,700/t ($1,257/t) exw against the base price of INR 118,300/t ($1,222/t), while chips (Cr:53% min, 10-20 mm) fetched INR 117,200/t ($1,210/t) over a base price of INR 112,300/t ($1,160/t). Fines (Cr:50% min, 0-10 mm) were concluded at INR 111,100/t ($1,147/t).

The auction witnessed improved bids compared to the previous auction on 24 April, indicating improved buying interest and firm chrome ore costs. The outcome is expected to support near-term market sentiment, even as stainless steel mills continue cautious need-based procurement.

Vedanta-FACOR's ferro chrome production increased 21% y-o-y to 101,000 t in FY'26 from 83,000 t in FY'25. Meanwhile, chrome ore output rose 49% y-o-y to 371,000 t from 250,000 t. The increase was driven by higher mining output, improved availability of high-grade ore, and the restart of Kalarangiata mines along with enhanced EC capacity at the Ostapal mine.