This week, the ferro alloys market in India saw a small increase in demand. While, ferro chrome prices climbed marginally as a result of an abundance of enquiries from the export market, silico manganese prices increased due to robust domestic and international demand. In spite of low demand, ferro silicon prices kept fluctutaing.
Manganese ore
Global manganese ore import prices across grades were stable w-o-w. Prices of Mn37% grade were at $4.4/dmtu, Mn44% stood at $4.86/dmtu, and Mn46% grade were offered at $5.2/dmtu. Manganese alloys producers watch further market sentiment and remain cautious about importing because of moderate demand, resulting in prices being unchanged.
There is a good chance that manganese ore prices will trend up in the near future as miners struggle with high operating and material handling costs.
IEX power prices
According to IEX (Indian Energy Exchange) weekly average spot prices (18 December-24 December) in day ahead market increased by 27% w-o-w to INR 5.66/unit as against INR 4.454/unit in last week led by improvement in power demand.
Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, were inched up by 1% w-o-w. The 60-14 grade price was up 1% w-o-w at $917/t, while the 65-16 grade was offered at $1,009/t, up by 1%. Prices rose last week as a result of an increase in inquiries, demand from abroad, and few finalised bulk purchases.
On the other hand, silico manganese prices in the domestic market were up 2% w-o-w to INR 74,110/t ex-Durgapur, INR 75,260/t ex-Vizag, and INR 75,300/t ex-Raipur. Prices increased marginally w-o-w due to robust domestic demand.
Ferro manganese
Ferro manganese export prices were rangebound w-o-w at $907/t for HC70%. Prices for HC75% were at $999/t, down 1% w-o-w. However, domestic ferro manganese prices were nearly stable w-o-w to INR 74,700/t ex-Durgapur, while ex-Raipur prices were assessed at INR 74,720/t. As a result of a lack of demand for special steel, prices remained steady.
Ferro chrome
Indian ferro chrome prices went up by INR 3,700/t w-o-w as Indian smelters were receiving a large number of inquiries from the export market, which was a good sign because customers from other countries were eager to book the material ahead of the New Year holidays. According to SteelMint on December 22, ferro chrome prices were hovering at around INR 101,200/tonne (t) exw-Jajpur. This week, the chrome ore market showed a slight recovery trend, amid favourable sentiments. This boosted ferro chrome prices as well.
Ferro silicon
According to SteelMint’s assessment on 23 December, Guwahati producers were offering at INR 118,250/t ex-works with few producers selling at slightly lower prices too. Meanwhile, in Bhutan ferro silicon prices were assessed at INR 123,500/t exw. Prices are almost rangebound w-o-w amid stable supply-demand dynamics as buyers and sellers agree on current prices. Moderate domestic demand also kept the prices stable on weekly basis.
Trade
SteelMint recorded bulk deals of around 9,500 t of ferro alloys this week, out of which manganese deals comprised around 6,500 t, ferro chrome 2,500 t, and ferro silicon 500 t.
Tender and auction
- State-owned SAIL has concluded a reverse auction for 9,000 t of silico manganese (60-15, size:10-50mm) for its Bhilai Steel Plant, Chhattisgarh on 17 Dec’22. The material was booked at around INR 77,453/t FOR (inclusive of all taxes). The ex-plant realisation was at around INR 73,000/t, sources informed.
- India’s largest steel producer, Steel Authority of India Ltd (SAIL), has scheduled an auction for 3,000 t (10-150 mm) of HC ferro chrome (60%) on 30 Dec’22 for its Salem Steel Plant (SSP), Tamil Nadu facility.
- State-run Rashtriya Ispat Nigam Ltd (RINL) has concluded a reverse auction for 3,200 t of high carbon ferro manganese (grade:70% and size: 25-50 mm) on 15 Dec’22. The material was booked at around INR 87,418/t FOR (including GST and GEM portal charges). According to sources, the price after normalisation is around INR 73,715/t FOR.
- Vedanta’s subsidiary, Ferro Alloys Corporation Limited (FACOR), has scheduled an auction for high-carbon ferro chrome of different grades and sizes on 23 Dec’22.
- Vedanta-FACOR held a ferro chrome auction on 23 Dec’22. The lot of 10-150 mm was concluded at INR 101,100/t exw, close to the base price. The auction ended close to the SteelMint’s assessment price of INR 101,200/t exw-Jajpur. According to sources, FACOR has received permission to expand its capacity by installing an additional 1X33 MVA submerged arc furnace for production of HC Fecr of 70,000 tpa on December 14
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