The domestic market for ferro alloys saw moderate demand this week and, as a result, prices inched up. However, demand for special steels remains moderate. In contrast, ferro chrome and manganese alloy prices rose as the major mills quoted higher prices. In response to fewer international bulk orders for manganese alloys, demand increased, SteelMint notes.
Manganese ore
Global manganese ore import prices across grades were rangebound with nominal fluctuation by 1% w-o-w at $4.15/dmtu for Mn37%, $4.6/dmtu for Mn44%, and $4.95/dmtu for Mn46%. Due to low production and moderate demand, manganese ore prices were volatile. Prices of manganese ore may fluctuate in the near future amid selling pressure on miners.
IEX power prices
Spot electricity trading at IEX (Indian Energy Exchange) remained weak this week on account of a drastic fall in power demand which plunged to 3,368 MU/day as against 3,721 MU/day last week. Spot prices in the day-ahead-market were down 12% w-o-w at INR 3.543/unit.
Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, rose by 3% w-o-w. The 60-14 grade was up by 3% w-o-w to $960/t, while the 65-16 grade increased by 2% to $1,056/t on increased overseas enquiries last week.
On the other hand, silico manganese prices edged up by 4% w-o-w to INR 80,133/t ex-Durgapur, INR 79,166/t ex-Vizag, and INR 80,766/t ex-Raipur. Due to constrained supply and increase in domestic and international demand, prices have been increasing since last week.
Ferro manganese
Exported ferro manganese prices increased by 4% to $943/t for HC70%. Prices of HC75% grade were up by 4% to $1,053/t. Meanwhile, domestic ferro manganese prices rose by 5% w-o-w to INR 79,033/t ex-Durgapur, while ex-Raipur prices were up marginally by 4% to INR 78,500/t. Prices for ferro manganese increased as a result of the rise in demand for special and stainless steels.
Ferro chrome
According to SteelMint’s assessment on 27 October, Indian producers were offering at around INR 105,000-106,000/t exw Jajpur, up INR 2,500/t w-o-w amid slightly better demand from both the domestic and export markets. In addition, the hike in chrome ore prices also supported ferro chrome prices amid high production cost.
Ferro silicon
Ferro silicon prices in India inched up by INR 1,000/t w-o-w as Indian producers attempted to raise prices due to the expiration of BIS certificate registration on 23 October, although demand remained subdued. As per our assessment on 28 October, Guwahati producers were offering around INR 131,400/t exw while Bhutanese producers with BIS certificate registration were offering at around INR 133,500/t ex-factory.
Trade
SteelMint recorded bulk trades of around 9,000 t of ferro alloys this week, out of which manganese deals comprised around 7,500 t, and 1,500 t were ferro chrome.
Tender and Auction
- State-run RINL booked 2,200 t (10-100 mm) of HC ferro chrome (60%) at around INR 137,921/t delivered to plant (inclusive of GST and other charges) through its reverse auction on 25 October.
- SAIL-Bokaro Steel Plant (BSL) booked 3,500 t of ferro manganese at reverse auction at around INR 73,633/t on FOR basis on 25 october.
- Vedanta’s subsidiary Ferro Alloys Corporation Limited (FACOR) had scheduled an auction for high-carbon ferro chrome of different sizes on 27 October. The H1 price for the bigger and smaller lots of 10-150 mm were INR 106,300/t and INR 106,400/t respectively, higher by 3% from the base price.
- SAIL’s Alloy Steel Plant (ASP) booked 400 t of HC ferro chrome (HC60%) at around INR 123,900/t delivered to plant (including GST) on 27 October.
- ArcelorMittal Nippon Steel India (AM/NS India) floated a request for quotation (RFQ) for 70 t of ferro vanadium (10-50 mm, V: 75-80%) from its Gujarat-based plant. The last date of bid submission is 30 October.
- RINL has invited bids to procure 14,000 t of silico manganese (grade: 60-15 and size: 25-100 mm). The last date of bid submission is 1 November.
- MOIL held an auction on 28 October for 6,350 t of various grades of high-carbon ferro manganese (2,000 t), ferro manganese slag (2,000 t), and manganese ore of dioxide grade (2,350 t) from its Balaghat plant. Out of 2,000 t, approximately 1,250 t of HC ferro manganese (70-72%) was booked at INR 75,600/t.
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