Weekly round-up: Ferro alloys market shows downtrend amid muted demand

The ferro alloys market showed a downtrend this week amid bearish steel sentiments and muted demand.

Manganese ore
Global manganese ore imports fell 2% w-o-w. The prices for 37% grade were at around $5.25/dmtu, grade 44% hovered at around $7.25/dmtu and grade 46% were at around $7.75/dmtu. Overall, the manganese ore market was muted due to pressure from the alloys market.
In addition, MOIL rolled over prices for grades higher than Mn 44% from June’s offers. However, prices for all other ferro grades with manganese content below Mn 44%, SMGR (30%, 25%), fines and chemical grades increased by 5% m-o-m for Q3FY2022.

IEX power prices
According to the Indian Energy Exchange, (IEX) weekly average spot prices (26 June- 2 July) in the day-ahead market was up by 10% w-o-w to INR 5.47/unit as against INR 4.90/unit last week. The hike in price was mainly because of improved demand, sources informed.

Silico manganese
Exported weekly silico manganese (60-14 grade) prices were range-bound with a nominal fall by $6/t w-o-w to $1,088/t and $1,209/t for 65-16 grade at Indian ports amid moderate demand.

Meanwhile, domestic weekly silico manganese prices were range-bound with declines ranging over INR 400- 900/t. Thus, prices settled at INR 83,920 /t ex-Durgapur, at INR 84,140/t ex-Vizag and at INR 84,690/t ex-Raipur.

Ferro manganese
Exported ferro manganese prices were stable amid limited demand in domestic and export markets. Weekly average prices for HC 70% were at $1,110/t, and at $1,210/t for HC 75% grade.

However, domestic ferro manganese prices remained range-bound w-o-w with nominal fluctuations of around INR 200/t. Prices remained at INR 86,840/t ex-Durgapur and ex-Raipur, at INR 87,360/t.

Ferro chrome
Ferro chrome prices dropped after the Chinese stainless-steel mills’ tenders declared lower purchase prices for July 2022. According to SteelMint’s assessment on 30 June, prices for HC60% were at around INR 106,700/t exw-Jajpur. The price drop in the country impacted the Indian market with most of the major buyers taking a backseat, holding back their procurement plans. Oversupply in the domestic market made producers shift back to ferro chrome production which also forced producers to lower prices.

Ferro silicon
Indian ferro silicon prices went down as market participants (buyers/sellers) awaited the major tenders, to get a clearer price direction. Some buyers were in wait-and-watch mode, awaiting the new price announcements for July dispatches. According to SteelMint’s assessment on 30 June 2022, most of the ferro silicon producers offered at around INR 146,500/t exw- from Guwahati while Bhutan’s prices dropped by around INR 3,750 /t w-o-w. Buyers were reluctant to book material at the higher prices.

Trade
Due to the bearish market, limited deals of around 4,000 t of bulk ferro alloys were recorded by SteelMint this week.

Tenders and auctions:

• ArcelorMittal Nippon Steel India (AM/NS India) floated a buy tender for 300 t of low-carbon ferro chrome (Cr: 60-65%, C: 0.15% max size: 10-50 mm) for July-August 2022 delivery. The last date for bid submission was 3 July.
• Chinese stainless steel giant Tsingshan reduced its tender prices for ferro chrome (for 50% Cr) by RMB 650/t ($97/t) m-o-m to RMB 8,995/t ($1,345/t) for July 2022 on delivered to plant basis, including taxes, with delivery latest by 10 August.
• MOIL conducted an auction for 4,750 t of different grades of high-carbon (HC) ferro manganese (850 t), ferro manganese slag (2,000 t) and manganese ore dioxide grade (1,900 t) on 28 June from its Balaghat plant. Around 600 t of HC ferro manganese (70-72%) and 2,000 t of slag were booked at close to the floor price.