India: Ferro chrome prices slip amid limited buying interest

• • Tsingshan, TISCO trim Aug26 tender prices by RMB 200/t ($30/t)

• • Indian stainless steel prices steady w-o-w

Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices dipped slightly by INR 500/t ($5/t) w-o-w to INR 121,000/t ($1,264/t) exw-Jajpur. Prices came down as limited inquiries in the market prompted sellers to revise offers.

Limited deals of around 400 t were reported last week in the similar price range of INR 121,000/t ($1,264/t) exw-Jajpur.

Prices came down for low silicon high-carbon ferro chrome as well by INR 500/t ($5/t) w-o-w to INR 125,500/t ($1,311/t) exw-Jajpur. And for low carbon ferro chrome, it stayed unchanged w-o-w at INR 242,000/t ($2,528/t) exw-Durgapur.

On he other hand, low phos ferro chrome prices edged up by INR 600/t ($6/t) w-o-w to INR 129,800/t ($1,356/t) exw-Durgapur. Prices were supported for it amid limited offerings and coke shortage.

Market recap (23-29 July):

Prices ease amid limited trades: India’s ferro chrome market witnessed a marginal correction over the week as subdued buying interest weighed on trading activity. Major stainless steel producers had already completed their procurement, resulting in limited fresh inquiries across the domestic market. With demand remaining weak, suppliers slightly reduced their offer prices to maintain plant operations and ensure steady cash flow. Trading volumes stayed thin, reflecting the absence of urgent buying requirements from end users.

At the same time, sellers refrained from making aggressive price cuts due to balanced supply conditions. Overall, muted buying and cautious selling sentiment led to a slight decline in ferro chrome prices during the week.

Decline in Chinese tender prices: China’s ferro chrome market remained under pressure after leading stainless steel producers Tsingshan and TISCO cut their August 2026 high-carbon ferro chrome tender prices by RMB 200/t ($30/t) m-o-m, reflecting ample supply, weaker raw material costs, and subdued seasonal demand. South African UG2 ore prices declined, reducing production costs for smelters.

Meanwhile, high-carbon ferro chrome prices also weakened amid abundant availability. Record chrome ore inventories of 4.74 mnt at Chinese ports by June end, coupled with a 33% y-o-y rise in H1CY’26 ferro chrome production to 5.34-5.35 mnt, further weighed on sentiment. Although stainless steel output increased during the first half, seasonal maintenance at mills curtailed procurement, keeping demand weak. With oversupply persisting and buyers remaining cautious, ferro chrome prices are likely to stay under pressure.

Indian stainless prices supported by alloy costs: Indian stainless steel prices for 304 grade HRC were steady w-o-w at INR 215,000/t ($2,246/t) exw-Mumbai. Prices were supported by higher nickel and molybdenum costs, a stronger US dollar, and geopolitical uncertainties. Flat product prices stayed resilient, with 316-grade coils gaining on tighter availability and rising raw material costs, while improved buying interest supported market sentiment. Imported offers also increased due to higher replacement costs, though domestic 304-grade material remained more competitive.

In contrast, the longs segment faced headwinds from weak export demand and cautious buyer sentiment despite rising input costs. Meanwhile, China’s stainless steel market remained subdued amid seasonal demand weakness and higher supply. Going forward, India’s flat products are expected to remain firm, while longs may continue to face pressure until export demand improves.

Outlook:

India’s ferro chrome market is expected to remain under mild pressure in the coming week. Domestic demand is likely to stay subdued as major stainless steel producers have largely completed their monthly procurement, limiting fresh buying activity. Softer Chinese tender prices, ample chrome ore availability, and abundant ferro chrome supply in China may continue to weigh on market sentiment.

However, balanced domestic supply conditions and firm alloy-driven support in India’s stainless steel flat products market are expected to prevent any sharp price correction. Market participants will closely monitor the return of stainless steel buying interest and developments in the Chinese market for clearer price direction.