India: Ferro chrome prices remain stable w-o-w; market eyes OMC auction outcome
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- Base prices rise 1-2% at OMCs chrome ore auction
- Stainless steel tags stagnant amid weak sentiment
Indian high-carbon ferro chrome (HC60%, Si:4%) prices remained largely stable w-o-w, down marginally by INR 400/tonne (t) ($5/t) as compared to the previous assessment on 11 June. Regular trades and the outcome of Vedanta-FACORs recent ferro chrome auction helped maintain steady prices. Additionally, the market awaits the outcome of the upcoming Odisha Mining Corporation (OMC) auction.
As per BigMints assessment on 18 June, high-carbon ferro chrome (HC60%, Si:4%) prices in India were at INR 100,400/t ($1,160/t) exw-Jajpur. Deals for around 6,000 t were concluded last week in the price bracket of INR 100,000-102,000/t ($1,155-1,178/t) exw.
For low-silicon high-carbon ferro chrome, prices edged up by INR 1,000/t ($12/t) w-o-w to INR 106,000/t ($1,224/t) exw-Jajpur. Deals for 200 t were concluded at INR 106,000-106,500/t ($1,224-1,230/t).
Low-carbon (C:0.1%) ferro chrome prices were steady w-o-w at INR 202,000/t ($2,333/t) exw-Durgapur. For this, 150 t of trades were carried out in the INR 200,000-202,000/t ($2,310-2,333/t) price bracket.
Market summary (12-18 June 2025)
Regular trades, auction results support prices: The domestic ferro chrome market has been static for several weeks now, with unchanged trade dynamics. Sellers have held firm on their offers amid higher input costs, while buyers have continued to resist higher offers. This has kept prices largelysteady, with some fluctuations, in recent times. This week too, the market witnessed such routine trade negotiations, which led to stable prices.
The recent Vedanta-FACOR ferro chrome auction on 13 June reflected the same sentiments. In the auction, the bigger lot of 10-150 mm achieved an H1 price of INR 100,400/t ($1,160/t) exw, slightly above the base price of INR 100,000/t ($1,155/t). In comparison to the 21 May auction, bids rose slightly by INR 100/t ($1/t).
A key source informed BigMint, "The response to the auction was moderate. Buyers felt that the base price was higher than their expectations."
SAIL-SSP also concluded a reverse auction for 4,200 t of high-carbon (HC) ferro chrome (Cr:57-63%, 10-70 mm) on 13 June. In that, the entire material was booked at INR 107,889/t FOR, as per sources.
Chinese prices edge lower: Ferro chrome (HC60%) prices in China edged lower by RMB 200/t ($28/t) w-o-w to RMB 7,750/t ($1,078/t) exw-Inner Mongolia. Prices declined slightly due to excess supplies and weak demand. A new phase of production in Inner Mongolia and furnace restarts in Shaanxi increased competition, prompting sellers to offer discounts. Demand remained soft, as stainless steel mills kept inventories low, and Tsingshan Group's removal of price limits gave buyers more leverage.
Market sentiment further weakened, as falling chrome ore and shipping costs reduced price support, while producers faced pressure from high-priced chrome ore inventories. In the near term, prices are expected to stay weak and fluctuate amid subdued demand and competition.
Stability in Indian stainless steel prices: Prices of 304-grade stainless steel hot-rolled coils (HRCs) were unchanged w-o-w at INR 182,000/t ($2,099/t) exw-Mumbai. Overall market sentiment was weak due to sluggish longs demand, which has persisted for the last 3-4 months. Demand is further expected to remain low during monsoons, as infrastructure and government projects progress slowly.
Globally, Indonesia tightened control over nickel supply by curbing production and suspending projects, creating supply concerns for stainless steel makers. The short-term outlook for stainless steel remains bearish, with seasonal and financial pressures likely to keep market activity subdued across key Asian regions.
Outlook
OMC has scheduled an auction for 76,000 t of chrome ore today with base prices of all grades rising by 1-2% (INR 51-373/t). The outcome of this auction will determine the ferro chrome price trajectory in the days ahead.
