Ferro alloys prices decreased this week due to weak demand in the domestic steel market. Demand for ferro alloys declined domestically and abroad, which weighed on prices. However, moderate demand kept ferro chrome prices flat. Marginal decline in demand for ferro alloys can be attributed to lower orders for manganese alloys from overseas, as per SteelMint assessment.
Manganese ore
Prices for all grades of imported manganese ore remained stable compared to last week at $4.15/dmtu for Mn37%, $4.6/dmtu for Mn44%, and $4.95/dmtu for Mn46%. Low production and low demand caused the price of manganese ore to remain stable. Increasing pressure from miners to sell manganese ore may cause prices to fluctuate in the near future.
IEX power prices
According to IEX (Indian Energy Exchange) weekly average spot prices (13 November-19 November) in day ahead market remained stable with marginal drop on weekly basis at INR 4.547/unit due to moderate power demand.
Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, dropped by 2% w-o-w. The 60-14 grade was up by 2% w-o-w to $920/t, while the 65-16 grade fell by 2% to $1016/t, Price reductions have resulted from moderate overseas enquiries over the preceding week but minimal deal conversion.
On the other hand, silico manganese prices were down by 5% w-o-w to INR 73,000/t ex-Durgapur, INR 73,160/t ex-Vizag, and INR 73,880/t ex-Raipur. Prices have decreased since last week as a result of a dip in both domestic and foreign demand. However, enquiries were moderate for manganese alloys products from importing countries.
Ferro manganese
Exported ferro manganese prices were marginally down by 1% at $926/t for HC70%. Prices of HC75% grade were down by 1% to $1,028/t. Meanwhile, domestic ferro manganese prices decreased by 2% w-o-w to INR 75,820/t ex-Durgapur, while ex-Raipur was assessed at INR 75,600/t. Stainless steel and special steel demand decreased, resulting in a decrease in ferro manganese prices.
Ferro chrome
Indian ferro chrome prices fell w-o-w amid muted demand. According to SteelMint’s assessment on 17 November, ferro chrome prices for HC60% were hovering around INR 99,000-100,000/t exw Jajpur. Domestic buyers remained silent, opting for a wait-and-see strategy, anticipating a drop in prices following Vedanta’s ferro chrome auction on 10 November. In addition, Chinese buyers sought material from an Indian seller at a price which was lower than domestic offers. As a result, despite high production costs, producers were forced to lower their offers.
Ferro silicon
Indian ferro silicon prices inched down owing to weak demand at higher prices. As a result, producers were offering at around INR 122,000/t exw Guwahati. Meanwhile, Bhutan’s offers were almost stable at INR 125,000/t exw. Furthermore, ferro silicon prices are falling globally due to low demand. In order to compete with international offers, producers were also forced to lower prices.
Trade
SteelMint recorded bulk trades of around 10,200 t of ferro alloys this week, out of which manganese deals comprised around 6,700 t, ferro chrome 2,000 t, and ferro silicon 1,500 t.
Tender and auction
- State-run RINL concluded a reverse auction for 14,000 t (25-50mm) of silico manganese (65-16 grade) at around INR 87,800/t FOR basis (excluding GST) on 12 November.
- OMC’s chrome ore auction from its South Kaliapani and Sukrangi chromite mines in Odisha received a favourable response on 16 November. Interestingly, the entire quantity of South Kalipani’s 52-54% Cr2O3 ore was booked at 26-28% premium from the base price.
- Vedanta-FACOR held an auction for ferro chrome on 18 November. The bigger lot of 10-150 mm has concluded at INR 98,700/t exw.
- ArcelorMittal Nippon Steel India (AM/NS India) has floated a supply tender for 4,000 t of high-carbon ferro manganese (Mn: 70%) from its Gujarat-based plant. The last date for submission of bids is 21 November.
- SAIL’s Chandrapur Ferro Alloys Plant (CFP) has scheduled an auction for 600 t of silico manganese (Mn 51-58%, 0-3mm, 3-10mm) on 25 November.
- MOIL will conduct an auction for 2,825 t of high-carbon (HC) ferro manganese of 63-72% grade, 1,000 t of ferro manganese slag and 2,940 t of manganese ore of dioxide grade on 23 November from its Bhandara mines and Balaghat plant.
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