India: Ferro chrome prices fall to 2-month low amid slow domestic buying

• Sellers prioritise exports amid weak domestic demand
  
  
• Stainless steel mills cut production amid tight gas supply
  
  

Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices fell further by INR 1,000/tonne (t) ($11/t) on 1 April as compared to the assessment on 25 March. Prices fell as domestic demand was limited, and sellers mainly focused on export orders.

As per BigMints assessment on 1 April 2026, high-carbon ferro chrome (HC 60%, Si: 4%) prices in India stood at a two-month low of INR 117,000/t ($1,249/t) exw-Jajpur. Low-silicon high-carbon ferro chrome (HC 60%, Si: 2%) prices too dropped by INR 1,500/t ($16/t) w-o-w to INR 122,000/t ($1,303/t) exw-Jajpur.

Meanwhile, low-carbon ferro chrome (C: 0.1%) prices went up by INR 3,600/t ($38/t) w-o-w to INR 230,000/t ($2,456/t) exw-Durgapur.

Market summary (26 March-1 April 2026)

Focus shifts to exports amid weak domestic demand: The Indian ferro chrome market was largely subdued during the assessment window, with trading activity staying limited due to the absence of major buyers. Weak demand led to downward pressure on domestic prices, prompting key producers to shift focus towards export markets. Export offers to China, Japan, and South Korea were heard in the range of 98-106 cents/lb CNF, translating to approximately INR 121,000-128,000/t ($1,297-1,372/t) CNF. The recent depreciation of the Indian rupee further supported realisations in the export segment, making overseas sales more attractive compared to domestic transactions.

We will offer around 2,000-2,500 t in the domestic market in April as we are focusing mainly on exports right now, said a major domestic producer with around 35,000-t monthly capacity.

If the current scenario persists, the domestic Indian market might witness material shortages, which could eventually push prices higher, another seller added.

Chinese prices remain steady: Ferro chrome (HC60%) prices in China were steady w-o-w at RMB 9,000/t ($1,310/t) exw-Inner Mongolia. Prices were supported by high chrome ore costs and rising smelting expenses, which continued to underpin production costs despite weak downstream demand.

Chrome ore prices edged higher amid firm overseas supplier sentiment, while sellers maintained strong offers. However, trading activity stayed subdued as stainless steel demand remained weak and buyers adopted cautious procurement strategies. Although traditional sectors showed slow recovery, demand from high-end manufacturing offered partial support.

Prices are expected to remain stable next week, with cost pressures balancing muted demand conditions.

Demand from stainless steel segment weakens amid production cuts: Although stainless steel prices increased, ferro chrome demand from stainless steel mills weakened as tight gas supply led to production cuts. This added to the downward pressure on ferro chrome prices. JSL, a key stainless steel manufacturer also mentioned in its press release, "Due to the heavy dependence of stainless steel manufacturing on industrial gases such as propane/LPG and natural gas, several processes across our plants have been adversely impacted."

Prices of 304-grade stainless steel cold-rolled coils (CRCs) rose by INR 6,000/t ($64/t) w-o-w to INR 226,000/t ($2,423/t) exw-Mumbai. Prices were supported by improving demand and tightening material availability. Supply disruptions, elevated freight costs, and geopolitical tensions impacting energy markets further continued to support sentiment.

Meanwhile, the government also granted a temporary exemption from mandatory input standards for select stainless steel flat imports until 30 September 2026, easing procurement amid domestic supply gaps, particularly in the 200 and 300 series products.

Globally, cost pressures supported prices despite muted demand. The market outlook remains firm, though energy volatility and raw material availability may influence near-term trends.

Outlook

BigMint expects prices to remain under pressure next week due to subdued domestic demand. Further price trends will be determined by the bids in the latest auction by Vedanta-Ferro Alloys Corporation Ltd (FACOR) for high-carbon ferro chrome (Cr: 50-56% min, 0-150 mm), which is scheduled on 3 April 2026.