Domestic ferro alloys prices remained rangebound this week on limited demand. As a result of mixed sentiments on the domestic and international markets, ferro alloys demand remained soft.
Moreover, there was a marginal decline in manganese alloys prices this week. Nevertheless, manganese ore and ferro chrome prices showed uptrends due to the acceptance of prices quoted by the major mills. Some overseas enquiries for manganese alloys resulted in a relatively weak demand for ferro alloys, SteelMint noted.
Manganese Ore
Global manganese ore import prices for higher grade (Mn: 44-46%) across grades inched up by at around 4% w-o-w. Prices of Mn37% grade were at $4.5/dmtu, up 1%, Mn44% stood at $5.3/dmtu, and Mn46% grade were offered at $5.8/dmtu. Eramet declared force majeure together with power cut causing main issues in Zambia resulted in a hike in manganese ore prices.
IEX Power
According to Indian Energy Exchange (IEX), the weekly average spot prices (8-14 January) in day ahead market increased by 25% w-o-w to INR 7.849/unit as against INR 6.293/unit last week. The sharp uptick in prices was supported by an increased power demand.
Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, were nearly stable w-o-w. The 60-14 grade prices was up 1% w-o-w at $1,007/t, while the 65-16 grade prices were offered at $1,109/t, stable w-o-w. Prices were stable last week as a result of limited inquiries, and demand from abroad.
However, weekly average prices of silico manganese in the domestic market were dropped by 2% w-o-w to INR 80,920/t ex-Durgapur, INR 81,380/t ex-Raipur, and INR 80,690/t ex-Vizag. Prices were pushed down by the lack of demand for silico manganese on the local and foreign markets.
Ferro manganese
Ferro manganese export prices were increased by 2% w-o-w at $1001/t for HC70%. Prices for HC75% were at $1,082/t, nearly stable w-o-w. Meanwhile, domestic ferro manganese prices were stable w-o-w to INR 80,620/t ex-Durgapur, while ex-Raipur prices were assessed at INR 81,040/t. Prices remained steady despite mixed sentiments in the market for special steel.
Ferro chrome
Indian ferro chrome producers increased their offers by INR 3,600/tonne w-o-w to around INR 107,600/t exw Jajpur due to strong export demand. Furthermore, ferro chrome prices bolstered post-active participation in Vedanta’s ferro chrome auction, which took place on 5 January, 2023. Furthermore, the Indian Rupee’s depreciation also turned smelters’ focus into export market. In addition, hike in chrome ore prices also supported ferro chrome offers this week.
Ferro Silicon
According to SteelMint’s assessment on 13 January, 2023, Bhutanese producers kept their prices unchanged at INR 120,000/t exw while producers in Guwahati followed suit and floated offers at similar levels. The majority of producers held their offers because some were already booked and the remaining were anticipating further price hike because there is a growing expectation that further BIS extensions will not be provided and, as a result, material flow from countries such as China and Malaysia will not be permitted into India.
Trade
SteelMint recorded bulk deals of around 13,100 t of ferro alloys this week. Out of which manganese deals comprised around 7,600 t, ferro chrome 4,500 t, and ferro silicon around 1,000 t.
Tender and auction
- SAIL’s Chandrapur Ferro Alloys Plant (CFP) has scheduled an auction for 600 t of silico manganese (Mn 51-56%, 0-3mm, 3-10mm) on 17 January, 2023. Furthermore, in the last auction held on 6 January, 2023, about 300 t of Mn: 54% grade was booked at a price range of INR 70,400-70,800/t.
- India’s largest steel producer, Steel Authority of India Ltd (SAIL), has floated a purchase tender of 15,100 t of HC silico manganese (grade: 60-15, size:25-50 mm) for its Durgapur Steel Plant (DSP). The last date for bid submission is 21 January, 2023 and the bid offer is valid for 60 days from the date of auction.
- India’s largest steel producer, Steel Authority of India Ltd (SAIL), has floated a purchase tender for 1,750 t (10-150 mm) of MC silico manganese (grade: 55-20, size:10-100 mm) for its Salem Steel Plant (SSP), Tamil Nadu. The last date for bid submission is 23 January, 2023 and the bid offer is valid for 60 days from the date of auction.
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