The domestic ferro alloys market saw moderate demand this week which caused prices to rise. Demand for special steels was also moderate. Ferro chrome and manganese alloys prices, on the other hand, increased as major Chinese mills quoted higher prices. SteelMint reported that demand increased in response to international orders for manganese alloys and ferro chrome.
Manganese ore
Global manganese ore import prices for higher grade (Mn: 44-46%) inched up by 2% w-o-w. Prices of Mn37% grade were at $4.45/dmtu, Mn44% stood at $5.35/dmtu, and Mn46% grade was offered at $5.7/dmtu. Eramet declared force majeure and also power cuts in Zambia resulted in a hike in manganese ore prices.
Further, MOIL raised prices of ore grades higher than Mn:44% by 15% m-o-m and prices of all other ferro grades with manganese content below 44%, SMGR (30%, 25%), and fines and chemical grades by 7.5% compared to December to maintain price parity with international markets.
IEX Power
According to Indian Energy Exchange (IEX), the weekly average spot prices (1-7 January) in the day ahead market inched up by 2% w-o-w to INR 6.293/unit as against INR 6.154/unit last week. Prices are on the higher side following a surge in power demand spurred by cold wave conditions prevailing in the north Indian states.
Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, rose by 6-8% w-o-w. The 60-14 grade price was up 6% w-o-w at $1,000/t, while the 65-16 grade was offered at $1,107/t, up by 8%. Prices rose last week as a result of an increase in enquiries, demand from abroad, and a few bulk purchases.
Meanwhile, weekly average prices of silico manganese in the domestic market were up 2% w-o-w to INR 82,480/t ex-Durgapur, INR 83,340/t ex-Raipur, and INR 81,760/t ex-Vizag. Considerable demand for silico manganese seen in both domestic and international markets supported higher prices.
Ferro manganese
Ferro manganese export prices increased by 9% w-o-w at $985/t for HC70%. Prices for HC75% were at $1,008/t, down 1% w-o-w. Meanwhile, domestic ferro manganese prices rose by 7-9% w-o-w to INR 80,200/t ex-Durgapur, while ex-Raipur prices were assessed at INR 81,150/t. Hike in silico manganese prices in line with manganese ore prices led to the hike in ferro manganese prices this week.
Ferro chrome
Indian ferro chrome prices rose w-o-w to around INR 103,000-105,000/t exw-Jajpur due to good demand from the export market as multiple enquiries from the domestic and international markets were received by the smelters. This week, Chinese buyers were more active since they wanted to stock up material before the Lunar New Year holidays. Most smelters produced low-phosphorus material for overseas buyers. This also created supply shortage of standard grade, which kept ferro chrome prices supported.
Ferro silicon
According to SteelMint’s assessment on 6 January, Indian ferro silicon was offered at around INR 118,000/t exw Guwahati, while Bhutan’s offers remained stable w-o-w at INR 120,000/t exw. Bulk orders were few, which kept prices steady as the majority of buyers booked small parcels due to volatility in the ferro alloys market.
Trade
SteelMint recorded bulk deals of around 6,445 t of ferro alloys this week, out of which manganese deals were 4,100 t, ferro chrome 2,000 t, and ferro silicon around 400 t.
Tender and auction
- SAIL’s Chandrapur Ferro Alloy Plant (CFP) booked 300 t of Mn: 54% grade at a price range of INR 70,400-70,800/t, out of 600 t of silico manganese (0-10mm, 51-54%mn) was booked through auction on 6 January.
- China’s HBIS confirmed its purchase prices for HC ferro chrome at RMB 9,200-9,300/t ($1,342-1,357/t) 50-basis for January tender, an increase of RMB 500/t ($73/t) m-o-m. The company also confirmed its purchase price for 3,900 t silico manganese at RMB 7,700/t ($1,123/t) for January deliveries.
- Vedanta-FACOR held a ferro chrome auction on 5 January. The bigger lot of 10-150 mm fetched an H1 price of INR 107,600/t ex-Jajpur, Odisha, higher by 5% than the base price, while the smaller lot of 10-150mm was booked at INR 104,100/t.
- Arcelor Mittal Nippon Steel India (AM/NS India) floated a buy tender for 400 t of low-carbon ferro chrome (Cr: 60-65%, C: 0.15% max size: 10-50 mm) and 2,000 t of low carbon (LC) ferro manganese (10-50 mm, Mn min 75%, C: Max 0.50%) from its Gujarat plant for January delivery. The last date for bid submission is 8 January.
- MOIL will conduct an auction for 1,700 t of high-carbon (HC) ferro manganese of 63-72% grade, 1,700 t of ferro manganese slag, and 2,975 t of manganese ore of dioxide grade on 11 Jannuary from its Bhandara mines and Balaghat plant.
- AM/NS India floated a supply tender for 4,400 t of medium-carbon silico manganese (10-50 mm, Mn 60-14, C: 2.5% max) from its Gujarat plant. The last date of bid submission is 12 January.
- State-owned SAIL invited a purchase tender for 11,249 t of silico manganese (60-15, size:10-50mm, P: 0.1% max) for its Bhilai Steel Plant in Chhattisgarh. The last date for bid submission is 16 January.
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