India: Ferro chrome prices rise w-o-w on tight supply

• Sellers unwilling to accept lower bids amid stable export pricing
  
  
• Higher bids in OMC auction supports firm pricing environment
  
  

Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices rose by INR 1,600/t ($17/t) w-o-w to INR 121,800/t ($1,272/t) exw-Jajpur, as per BigMint's assessment on 3 June 2026, underpinned by tight supply, favourable export arbitrage conditions, and stable procurement from end users. Deals for around 2,600 t were concluded during the assessment window in the price range of INR 118,000-124,000/t ($1,232-1,295/t) exw. Bids in OMC's ferro chrome auction for high-grade lots also fetched a significant premium over the set base price, supporting higher prices.

Low-silicon high-carbon ferro chrome prices strengthened by INR 1,400/t ($15/t) w-o-w to INR 126,400/t ($1,320/t) ex-works Jajpur, with domestic transactions totalling around 100 t during the assessment period, concluded at approximately INR 127,000/t ($1,326/t). In contrast, low-carbon ferro chrome (0.1% C) prices remained steady at INR 243,000/t ($2,537/t) ex-works Durgapur.

Market highlights (28 May-03 June)

Strong auction bids, firm seller stance support market: Domestic sellers remained unwilling to accept lower bids amid stable export indications, improved realisations, and tightening available supply at current prices. Additionally, higher bids observed in auctions further reinforced the firm pricing environment. Despite limited aggressive buying, steady export offers and resilient domestic sentiment together prevented price erosion, sustaining an overall stable-to-firm market tone during the assessment period.

Weak stainless steel demand pressures China's market: Chinese ferro chrome market showed mixed price trends as weakening stainless steel demand continued to limit buying interest across downstream sectors. High-carbon grades remained stable, supported by steady June contract settlements between major steelmakers, while medium- and low-carbon grades declined due to softer consumption. Elevated chrome ore inventories and subdued trading activity further weakened cost support, with producers and traders maintaining cautious procurement strategies amid persistent oversupply concerns and limited short-term demand recovery signals.

Indian stainless steel prices decline: Prices of 304 grade stainless steel HRCs declined by INR 2,000/t ($21/t) w-o-w to INR 220,000/t ($2,297/t) exw-Mumbai. Market sentiment remained subdued amid weak downstream demand and cautious procurement across both flat and long products. Buyers continued to restrict purchases to immediate requirements due to unclear demand visibility, while mills reported slower order inflows from domestic and export markets.

Despite some cost support from rising nickel and alloy prices, the absence of meaningful consumption recovery limited producers' pricing power. Overall sentiment stayed under pressure as market participants awaited clearer signs of demand improvement.

Outlook

BigMint expects prices to stay supported as balanced supply-demand conditions and consistent end-user procurement offset subdued stainless steel consumption and cautious buying activity.