The ferro alloys market saw negative sentiments prevailing this week and trade volumes remained low. The market witnessed high-cost manganese alloy supplies by manufacturers and low-cost trade offers, ultimately leading to reduction in offer prices.
Manganese ore
Global manganese ore imports were stable w-o-w amid low demand. Prices for 37% grade were stable at around $5.15/dmtu, while grade 44% was offered at around $7.15/dmtu. Grade 46% offers were around $7.55/dmtu. Overall, the manganese ore market was muted due to pressure from the alloys market.
IEX power prices
According to IEX (Indian Energy Exchange) weekly average spot prices (10-16 July) the in day-ahead market dropped 15% w-o-w to INR 4.80/unit as against INR 5.64/unit last week. The drop in prices was primarily due to the slowdown in industrial activity during monsoon which has weakened power demand.
Silico manganese
Exported silico manganese (60-14 grade) prices were down $30/t w-o-w to $1,030/t and 65-16 grade was down $30/t to $1,150/t at Indian ports due to low demand.
Meanwhile, domestic silico manganese prices fell by INR 960/t to INR 81,300 /t ex-Durgapur, down INR 1,660/t to INR 82,480/t ex-Vizag. Prices fell by INR 1,230/t to INR 82,130/t ex-Raipur on a weekly basis.
Ferro manganese
Ferro manganese export prices were stable amid the continuous drop in demand. Weekly average prices for HC 70% were down by $23/t at $1,086/t, while prices of HC 75% grade dropped by $ 14/t to $1,192/t. Meanwhile, domestic ferro manganese prices fell INR 1,580/t on the week to INR 86,240/t ex-Durgapur and by INR 1,400/t to INR 87,460/t ex-Raipur.
Ferro chrome
Ferro chrome prices fell by INR 2,250 /t w-o-w to INR 103,500/t exw-Jajpur due to weak demand and intense selling pressure. Margins shrunk amid high inventory held by producers as buyers booked lower volumes compared to usual monthly consumption due to the reduction in stainless steel production. Export demand was also muted this week which resulted in prices trending lower.
Ferro silicon
Domestic ferro silicon prices remained almost stable with marginal fluctuation as both buyers and sellers agreed to deal on prevailing prices. A bearish stainless steel market held ferro silicon prices from gaining further. According to SteelMint’s assessment on 15 July, most of the ferro silicon producers were offering at around INR 147,000- 150,000/tonne (t) exw-Guwahati and Bhutan.
Deals
SteelMint recorded around 16,000 t of bulk ferro alloys deals this week, out of which manganese alloys deals accounted for 5,000 t, ferro chrome 10,000 t, and ferro silicon 1,000 t.
Tenders and auctions
- OMC reduced the base price for its upcoming chrome ore auction on 18 July. Prices of ore from the South Kaliapani Chromite Mines was reduced by 2% m-o-m. Meanwhile, the Sukrangi Chromite Mines’ floor price was slashed by around 6% m-o-m compared to the previous auction on 17 June.
- IDCOL conducted an auction for 1,350 t of different grades of ferro chrome on 14 July out of which low silicon grade (Si:2%, quantity: 200t) was booked close to the floor price at around INR 105,000/t exw, sources informed.
- Major Chinese steelmaker HBIS Group’s tender price for silicon manganese in July stood at RMB 7,950/t ($1,185/t), down RMB 500/t ($75/t) from June, with purchasing volumes increasing by 650 t on the month.
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