India’s domestic ferro alloys market saw an uptick in demand this week. Silico manganese prices grew due to strong domestic and international demand, while ferro chrome prices rose as a result of an abundance of export market queries reaching Indian smelters. Despite the lack of demand, ferro silicon prices continued to range-bound.
Manganese ore
Global manganese ore import prices across grades rose by at around 6% w-o-w. Prices of Mn37% grade were at $4.45/dmtu, Mn44% stood at $5.25/dmtu, and Mn46% grade were offered at $5.6/dmtu. The price of manganese ore climbed as the market and demand both improved.
As miners battled with high operating and material handling expenses, there is a considerable likelihood that manganese ore prices will trend upward in the near future.
IEX power prices
According to IEX (Indian Energy Exchange) weekly average spot prices (25 December-31 December) in day ahead market increased by 9% w-o-w to INR 6.15/unit as against INR 5.66/unit in last week.
In addition, power regulators in India capped the price of electricity traded on their spot power exchanges at INR 12 ($0.1450) per unit ahead of summer’s expected record energy demand.
According to the CERC, consumer interests prompted the extension of the ceiling “until further orders” on Wednesday.
Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, inched up by 2% w-o-w. The 60-14 grade price was up 3% w-o-w at $940/t, while the 65-16 grade was offered at $1,023/t, up by 1%. A surge in inquiries, demand from abroad, and a few finalised bulk purchases pushed prices up last week.
On the other hand, silico manganese prices in the domestic market were up 2% w-o-w to INR 77,3800/t ex-Durgapur, INR 77,080/t ex-Vizag, and INR 77,800/t ex-Raipur. Both domestically and abroad, there has been high demand for silico manganese goods. The relatively high operating rate of producers on the spot market and the price of raw materials both contributed to the rising price of silico manganese on the domestic market.
Ferro manganese
Ferro manganese export prices were nearly at $904/t w-o-w for HC70%. Prices for HC75% were at $998/t, down 1% w-o-w. However, domestic ferro manganese prices were nearly stable w-o-w at INR 74,720/t ex-Durgapur, while ex-Raipur prices were assessed at INR 74,700/t. Prices remained constant as a result of a lack of demand for special steel.
Ferro chrome
A solid export market led to a rise in Indian ferro chrome prices of INR 2,300/t w-o-w. Additionally, prices in China began to rise, which has helped to sustain prices in India.
Though this week’s rising prices in the Indian market were unacceptably high, export market mood, particularly in China, remained positive and fed sellers’ predictions that prices may rise even higher. Ferro chrome is now being sold in the domestic market by the majority of Indian smelters for about INR 104,000–105,000 per tonne. But according to sources, the pricing for transactions were between INR 102,000 and 103,000/t exw.
Ferro silicon
According to SteelMint’s assessment on 30 December, Guwahati producers were offering at INR 118,000/t ex-works. Indian ferro silicon prices remained range-bound this week, falling marginally amid moderate demand, as domestic steel manufacturers await new price announcement from Bhutan’s smelters for the first month of New Year 2023. Only after which they are expected to continue booking material for the following month.
However, a major Bhutanese ferro silicon supplier reduced offers to INR 120,000/t exw for January 2023 deliveries today morning, as per latest reports. Prices were lowered due to unacceptance in higher prices amid weak demand.
Trade
SteelMint recorded bulk deals of around 10,200 t of ferro alloys this week, out of which manganese deals comprised around 7,200 t, ferro chrome 2,500 t, and ferro silicon 500 t.
Tender and auction
- Chinese stainless steel major, Taiyuan Iron and Steel Corporation (TISCO), raised ferro chrome (HC 50%) purchase prices by RMB 500/t ($72/t) m-o-m to RMB 8,495/t ($1,221/t) following an increase in the price of the material in spot market. Prices are delivered to plant and include taxes.
- India’s largest steel producer, Steel Authority of India Ltd (SAIL), has scheduled an auction for 590 t (10-150 mm) of HC ferro chrome (60%) on 2 January, 2023 for its Durgapur Steel Plant (DSP). The bid offer is valid for 30 days from the date of auction.
- State-owned SAIL has issued a purchase tender for 210 t of HC ferro manganese (Mn70%, 10-30 mm) for its Alloy Steel Plant (ASP), Durgapur. The last date for bid submission is 6 January, 2023. A reverse auction will be conducted amongst all the technically-qualified bidders except the highest-quoting bidder. Ferro manganese (HC70%) prices were assessed at around INR 74,500/t exw-Durgapur on 26 December.
- SAIL’s Chandrapur Ferro Alloys Plant (CFP) has scheduled an auction for 600 t of silico manganese (Mn 51-54%, 0-3mm, 3-10mm) on 6 January, 2023.
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