Prices of ferro alloys in the domestic market remained rangebound this week due to limited demand. Demand remained soft due to mixed sentiments in both the domestic and international markets.
The drop in ferro chrome prices was mainly because of weak demand at higher prices in the domestic market. Manganese alloys prices declined marginally this week on modest domestic steel demand. However, prices of manganese ore, especially of the higher grades, showed an uptick as major mills in China accepted the price hike.
Manganese ore
Global manganese ore import prices for Mn: 44-46% rose by 2% w-o-w. Prices of Mn37% grade were at $4.45/dmtu, down 2%, Mn44% stood at $5.8/dmtu, while Mn46% grade was offered at $6.35/dmtu.
IEX power
According to Indian Energy Exchange (IEX), the weekly average spot prices (5-11 March) in day-ahead-market registered a sharp drop of 34% w-o-w to INR 5.603/unit as against INR INR 8.375/unit last week.
Gradual improvement in supply-side constraints boosted by higher availability of power-generating capacities reduced the gap between buy-sell bids on the exchange. This drove down market clearing prices for electricity transactions.
Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, were stable w-o-w. The 60-14 grade remained stable at $931/t, while 65-16 material was offered at $1,040/t, unchanged w-o-w. Due to fewer queries last week and limited demand from abroad, prices were stable.
Meanwhile, weekly average prices of silico manganese in the domestic market inched down by 1 % w-o-w to INR 74,000/t ex-Durgapur, INR 74,666/t ex-Raipur, stable w-o-w, and INR 74,000/t ex-Vizag, down 1% w-o-w. Lack of local demand for silico manganese and liquidity issues drove prices lower.
Ferro manganese
Export prices of HC70% ferro manganese remained rangebound w-o-w at $947/t, down 1%. Prices of HC75% were at $1,040/t, stable w-o-w.
Domestic ferro manganese prices were stable w-o-w at INR 78,000/t ex-Durgapur, while ex-Raipur prices were unchanged at INR 78,300/t. Due to restricted demand for special steels and the imbalance in supply and demand, prices of ferro manganese remained unchanged.
Ferro chrome
According to SteelMint’s assessment on 9 March, Indian ferro chrome (HC60%) prices dropped by INR 2,600/t w-o-w to INR 118,800/t exw Jajpur. The decline in prices was mainly because of weak demand in the domestic market due to higher prices. Buyers resisted booking material at higher prices as the stainless steel market remained under pressure. Furthermore, increased production in China also reduced interest in Indian ferro chrome which, too, impacted ferro chrome prices.
Ferro silicon
Indian ferro silicon (70%) prices inched down owing to weak demand. Drop in global prices also discouraged producers to reduce their offers. Meanwhile, smelters were offering at around INR 120,000/t exw from both Guwahati and Bhutan. High inventory with producers impacted ferro silicon prices.
Trade
SteelMint recorded bulk deals of around 5,300 t of ferro alloys this week. Out of this, manganese deals comprised around 2,900 t, ferro chrome 1,600 t, and ferro silicon around 800 t.
Tenders and auctions
- ArcelorMittal Nippon Steel India (AM/NS India) floated a purchase tender for 600 t of low-carbon (LC) ferro chrome (Mn: 60-65%, size: 10-50mm) for its Gujarat-based plant. The last date for submission of bids is 11 March. Delivery is scheduled for April and the payment terms include a credit of 30 days.
- SAIL’s Chandrapur Ferro Alloys Plant (CFP) scheduled an auction for 600 t of silico manganese (Mn 51-56%, 0-3mm, 3-10mm) on 10 March. SteelMint’s assessment of silico manganese (60-14) prices stood at around INR 74,800/t exw-Raipur on 6 March.
- Vedanta-FACOR held a ferro chrome auction on 10 March 2023. The bigger lot of 10-150mm fetched an H1 price of INR 116,600/t ex-Jajpur, up 1% over the base price, while fines (0-10mm) was booked at INR 105,500/t exw, close to the base price. The auction received moderate response as buyers resisted booking at higher prices, sources informed.
- SAIL’s Chandrapur Ferro Alloy Plant (CFP) conducted an auction for 600 t of silico manganese (0-10mm, 51-56%mn) on 10 March 2023. About 100 t of Mn 51% material was booked at INR 51,790/t exw while 100 t of Mn 56% grade was sold at INR 66,390/t, sources informed. SteelMint’s silico manganese (60-14 grade) prices stood at INR 74,600/t exw on 10 March.
- Rashtriya Ispat Nigam Ltd (RINL), the corporate entity of Vizag Steel Plant, invited bids for procurement of 370 t of silico manganese (grade: 60-15 and size: 25-50 mm). The last date of bid submission is 13 March. SteelMint’s assessment of silico manganese prices stood at INR 74,000/t exw-Vizag on 10 March.
- State-run RINL-Visakhapatnam Steel Plant floated two high-carbon silico manganese purchase tenders – one for 3,070 t (60-15 grade; 40-100 mm size) and another for 2,000 t (60-15 grade; 25-50 mm size). The last date of bid submission for these tenders is 13th and 14 March, respectively. Bids will be valid for 90 days from the submission date. SteelMint assessed silico manganese prices at INR 74,000/t exw-Vizag on 10 March.
- State-owned long steel producer RINL-Vizag Steel invited bids for procurement of 900 t of ferro silicon (Si-70%, 25-50 mm size). A sealed physical techno-commercial unpriced bid must be submitted by 13 March to be eligible to participate in the first cycle procurement of this empanelment tender.
- MOIL conducted an auction for 625 t of high-carbon (HC) ferro manganese (63-72% grades) on 10 Marc. About 200 t of high grade (70-72%) material was booked at INR 76,200/t exw, while another 125 t comprising other grades was also booked. Prices of ferro manganese (HC70%) were at INR 78,300/t ex-Raipur on 10 March.
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