Ferro alloy price saw a drop last week due to general reduction in domestic steel demand and mixed sentiments. The ongoing lack of demand for specific steels had an effect on supply. Reduced orders from abroad for manganese alloys led to decrease in the demand for ferro alloys. The decline in ferro chrome prices was mostly caused by weak domestic demand, and it was also influenced by slow demand from outside.
Manganese ore
Global manganese ore import prices for Mn: 44-46% fell by 4% w-o-w. Prices of Mn37% grade were at $4.25/dmtu, down by 1%, Mn44% stood at $5.45/dmtu. Mn46% grade was offered at $5.85/dmtu. Low demand for manganese alloys forced production cuts by smelters in the domestic market and contributed to the lowering of manganese ore prices.
IEX power
According to Indian Energy Exchange (IEX), the weekly average spot prices (19-25 March) in day-ahead-market registered a drop of 26% w-o-w to INR 4.078/unit as against INR 5.516/unit last week.
Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, were down by 4% w-o-w. The 60-14 grade remained stable at $886/t, while 65-16 material was offered at $1,000/t, which dropped by 3% w-o-w. As a result of some inquiries last week and a limited demand from abroad, prices were kept low.
Meanwhile, weekly average prices of silico manganese in the domestic market inched down by 1% w-o-w to INR 72,560/t ex-Durgapur, INR 73,200/t ex-Raipur, down by 1% w-o-w, and INR 72,940/t ex-Vizag, fell by 1% w-o-w. Low manganese alloy demand forced smelters to cut production in the domestic market and lowered manganese ore prices, which impacted silico manganese prices.
Ferro manganese
Export prices of HC70% ferro manganese dropped by 2% w-o-w to $919/t, down by 2%. Prices of HC75% were at $1,007/t, fell by 3% w-o-w.
Domestic ferro manganese prices inched down by 2% w-o-w to INR 75,110/t ex-Durgapur. On the other hand, ex-Raipur prices were down by 2% w-o-w to INR 75,680/t. Prices of ferro manganese slightly decreased as a result of the limited demand for special steels and the mismatch in supply and demand.
Ferro chrome
According to SteelMint’s assessment on 23 March, Indian ferro chrome (HC60%) prices dropped by INR 4,400/tonne w-o-w to 111,000-112,000/t exw Jajpur due to weak demand from Indian stainless-steel producer amid bearish market sentiments, assessed on 23 March. In addition, sluggish demand from overseas market also dampened ferro chrome prices.
Indian stainless steel is still short in supply. Because the costs of duty-free imported coil were less expensive than those offered domestically, the majority of purchasers showed a greater interest in Chinese stainless steel coil. As a result, increased stock levels are piling up reducing prices. Stainless steel companies were compelled to cut output.
Ferro silicon
According to SteelMint’s assessment on 24 March, Indian ferro silicon (70%) prices were hovering at around INR 118,250/t exw Guwahati. Bhutan’s producers were offering at around INR 119,600/t exw. Prices remained rangebound with only a marginal drop seen this week due to moderate demand
Steel mills’ demand has shrunk due to lower operation rates, and steel producers have reduced output m-o-m in March due to sluggish demand. Due to limited supply, this had a direct impact on ferro silicon prices. Selling pressure and cash flow issues led to some small producers booking material at lower prices compared to current spot offers. This also compelled major producers to reduce their offers marginally in order to maintain long-term business relations.
Trade
SteelMint recorded bulk deals of around 7,850 t of ferro alloys this week. Out of this, manganese deals comprised around 4,500 t, ferro chrome 2,300 t, and ferro silicon around 1,050 t.
Tenders and auctions
- ArcelorMittal Nippon Steel (AM/NS) India has floated a purchase tender for 1,800 t of low carbon (LC) ferro manganese (Mn: 75%, size: 10-50mm) for its Gujarat-based plant. The last date for submission of bids is 30 March 2023. The delivery is scheduled for April-June 2023 and payment terms include credit of 30 days.
- Silico manganese futures for May 2023 delivery on the China’s Zhengzhou Commodity Exchange (ZCE) remained stable w-o-w to close at RMB 7,310/t ($1,063/t) on 24 March 2023. In the physical spot market too, silico manganese (65-17) prices were stable w-o-w at RMB 7,125/t ($1,035/t), as per SteelMint’s assessment.
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