India: Ferro chrome prices hold steady amid firm auction outcomes

• OMC chrome ore auction premiums support costs
  
  
• Chinese mills cut July tender prices
  
  

Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices stayed largely steady, going up marginally by INR 300/t ($3/t) w-o-w to INR 123,200/t ($1,304/t) exw-Jajpur. Prices kept steady amid supported response at both OMCs chrome ore and Vedanta-FACORs ferro chrome auction.

Limited deals of around 600 t were reported last week within the price bracket of INR 122,700-124,200/t ($1,299-1,315/t) exw.

Low-silicon high-carbon ferro chrome prices too were stable w-o-w at INR 128,000/t ($1,355/t) exw-Jajpur. Low-carbon and low phos ferro chrome prices went up by INR 1,200/t ($13/t) and INR 1,700/t ($18/t) w-o-w to INR 245,200/t ($2,596/t) exw-Durgapur and INR 130,000/t ($1,376/t) exw-Jajpur, respectively.

Market highlights (18-24 June)

OMC auction outcomes support seller sentiment: At OMC's chrome ore auction held on 19 June, 76,500 t were booked out of the 108,600 t offered. Bid premiums for most grades moved up by 1-4% (INR 230-1,034/t), while a few grades witnessed a marginal correction of 1-2% (INR 136-266/t). The overall auction performance helped sustain raw material costs, encouraging sellers to maintain firm ferro chrome offers.

Entire quantity booked at Vedanta-FACOR ferro chrome auction: At Vedanta-FACOR's ferro chrome auction conducted yesterday, the entire offered volume was sold. The larger lot (Cr: 57% min, 10-150 mm) achieved an H1 price of INR 122,700/t ($1,299/t) exw, exceeding the base price by INR 1,500/t ($16/t). Compared with the previous auction on 20 May, bids for the same lot improved by INR 3,000/t ($32/t) exw, broadly aligning with prevailing spot market levels.

Market eyes upcoming OMC ferro chrome auction: Attention is now shifting to OMC's ferro chrome auction scheduled for 29 June, where 1,150 t of material across multiple grades and sizes (Cr: 53-64%, 0-100 mm) will be offered. The base price for the 100-t lot (Cr: 60-64%, 10-100 mm) has been fixed at INR 123,200/t ($1,304/t) exw, providing an indication of current market expectations.

Chinese mills reduce ferro chrome tender price: China's Tsingshan lowered its July high-carbon ferro chrome tender price (Cr:50% basis) by RMB 200/t ($29/t) m-o-m to RMB 8,295/t ($1,222/t) DAP, including taxes. Additionally, TISCO also reduced its tender price by the same amount to RMB 8,095/t ($1,192/t) DAP, including taxes.

It declined largely due to oversupply, weak stainless steel demand, and sluggish spot market activity. Lower South African UG2 chrome ore prices reduced production costs and weakened cost support. Meanwhile, China's high-carbon ferro chrome output reached a record high in May, ensuring ample market availability. On the demand side, stainless steel mills continued need-based procurement, with muted buying interest and limited inventory replenishment keeping prices under pressure.

Cautious buying weighs on stainless steel market: Stainless steel prices for 304 grade HRC went down by INR 3,000/t ($32/t) w-o-w to INR 215,000/t ($2,276/t) exw-Mumbai. India's stainless steel market remained subdued last week due to weak downstream demand, falling nickel prices, and continued market uncertainty. Buyers remained cautious and largely limited purchases to immediate requirements, while mills focused on executing previously booked orders.

The flats segment witnessed slow trading activity, with weak demand from key consuming sectors and high freight costs making imports less attractive. The longs segment also came under pressure as suppliers offered discounts to secure orders amid weak consumption. Export activity remained sluggish due to geopolitical tensions affecting buying interest.

Outlook

India's ferro chrome market is expected to remain largely stable or slightly firm up in the coming week, supported by firm chrome ore costs and positive auction outcomes from recent domestic auctions. However, limited spot deals, weak domestic stainless steel demand, and lower Chinese tender prices may restrict any significant upside. Market participants are likely to closely monitor the upcoming OMC ferro chrome auction and stainless steel demand trends, with prices expected to trade in a narrow range unless buying activity improves.