Ferroalloys prices decreased this week as a result of weak demand and limited investment in domestic steel. Domestic and overseas demand declined, which led to the decline in prices. Ferro chrome quotations for the main mills remained flat due to minimal demand. Lower orders for manganese alloys from abroad led to a slight fall in demand for ferro alloys as a whole.
Manganese ore
Prices of all grades of imported manganese ore remained stable week on week at $4.15/dmtu for Mn37%, $4.6/dmtu for Mn44%, and $4.95/dmtu for Mn46%. Low production and low demand led to prices of manganese ore remaining stable. Manganese ore prices may fluctuate in the near future as miners are under increasing pressure to sell.
IEX power prices
According to IEX (Indian Energy Exchange) weekly average spot prices (6-12 November) in the day ahead market remained almost stable with 4% w-o-w hike to INR 4.613/unit as against INR 4.438/unit, supported by a better power supply situation that has gradually eased competitive bidding in the trading platform.
Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, remained rangebound w-o-w. The 60-14 grade was up by 3% w-o-w to $940/t, while the 65-16 grade inched up by 2% to $1,036/t since the past week, there have been moderate enquiries from overseas, resulting in price drops.
On the other hand, silico manganese prices were down by 5% w-o-w to INR 75,5804/t ex-Durgapur, INR 75,580/t ex-Vizag, and INR 77,020/t ex-Raipur. Since last week, prices have dropped as a result of the decline in both domestic and international demand.
Ferro manganese
Exported ferro manganese prices fell marginally by 1% at $939/t for HC70%. Prices of HC75% grade were down by 1% to $1,041/t. Meanwhile, domestic ferro manganese prices decreased by 2% w-o-w to INR 76,840/t ex-Durgapur, while ex-Raipur was assessed at INR 77,220/t. Ferro manganese prices decreased as a result of low demand for stainless and special steels.
Ferro chrome
The Indian ferro chrome market was quiet this week as most buyers awaited the results of FACOR’s ferro chrome auction on 10 November to get a clear picture. In addition, lower auction participation impacted ferro chrome prices. Due to weak demand from both the domestic and export markets, Indian ferro chrome prices remained weak w-o-w.
According to SteelMint’s assessment on 10 November, producers were offering at around INR 104,000-105,000/t exw, but buyers were asking INR 103,000/t following Vedanta’s auction result.
Ferro silicon
Indian ferro silicon prices remained stable w-o-w to around INR 125,000/t exw Guwahati amidst moderate demand while Bhutan producers offered at around INR 125,900/t exw, assessed on 11 November. High inventory and weak demand forced producers to kept prices stable.
Trade
SteelMint recorded bulk trades of around 6,500 t of ferroalloys this week, out of which manganese deals comprised around 4,500 t, ferro chrome 1,500 t, and ferro Silicon 5,00 t.
Tender and auction
- SAIL has invited a purchase tender for 9,000 t of silico manganese (60-15, size:10-50mm) for its Bhilai Steel Plant, Chhattisgarh. The last date for bid submission is 15 November.
- SAIL has floated a purchase tender for 262 t of low-carbon silico manganese (Mn-55% min,C-1.0%max, P-0.1%max, Size- 30-80mm) for its Bokaro Steel Plant for four months. The due date of bid submission is 15 November
- SAIL has concluded a reverse auction for 18,500 t of silico manganese (60-15, size:25-50mm) for its IISCO Steel Plant, Burnpur, West Bengal at around INR 68,830/t on FOR basis (inclusive of GEM portal charges) on 9 November.
- Rashtriya Ispat Nigam Ltd (RINL), the corporate entity of Vizag Steel Plant, has invited bids to procure 3,200 t of High Carbon (HC) ferro manganese (grade:70% and size: 25-50 mm). The last date of bid submission is 15 November.
- FACOR, a Vedanta subsidiary, held a ferro chrome auction on 10 November. The big and small lots of 10-150mm size were booked at H1 price of INR 102,450/t and INR 103,250/t ex-Jajpur respectively, close to the floor price with less participation.
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