Ferro alloys prices dropped marginally amid low demand and limited buying in the domestic market this week, with manganese alloys and ferro silicon prices falling marginally but continuously. However, ferro chrome prices inched up owing to the acceptance of quoted prices by the major steel mills in the domestic market. Meanwhile, demand for ferro alloys remained relatively weak due to low manganese alloy inquiries from overseas, SteelMint notes.
Manganese ore
Global manganese ore import prices across grades were range-bound w-o-w at $4.1/dmtu for grade 37%, $4.85/dmtu for grade 44%, and $5.35/dmtu for grade 46%. Low demand and reduced production continued to cause manganese ore prices to remain range-bound. Despite selling pressure from miners, manganese ore prices should remain weak in the short term.
IEX power prices
According to the Indian Energy Exchange (IEX) weekly average spot prices (25 September- 1 October) in the day-ahead market rose by 10% to INR 4.953/unit on weekly basis due to improvement in demand during the festive season.
Energy planner Central Electricity Regulatory Commission (CERC) has directed the power trading exchanges to continue capping electricity prices at INR 12/unit till 31 December, 2022. The provision was kept in place till September, which has been extended for three additional months in anticipation of higher power demand in winter.
Silico manganese
Prices of silico manganese, exported from Haldia Viag ports, were down. The 60-14 grade was down by 2% w-o-w to $905/t while the 65-16 grade was down 2% to $1,011/t amid low inquiries.
On the other hand, silico manganese prices dropped 2% w-o-w to INR 71,820 /t ex-Durgapur, by 1% to INR 72,060/t ex-Vizag and by 2% to INR 72,320/t ex-Raipur w-o-w. Due to the continued decline in raw material prices, domestic buyers were eager to receive lower silico manganese quotations. This resulted in further price declines.
Ferro manganese
Exported ferro manganese prices were also down 3% to $920/t for HC 70%. The HC 75% grade was marginally down by 1% to $1,009/t. Meanwhile, domestic ferro manganese prices fell by 1% w-o-w to INR 74,980/t ex-Durgapur, while ex-Raipur prices dropped to INR 75,040/t. Prices for ferro manganese continue to decline due to an absence of demand for special steels.
Ferro chrome
Indian ferro chrome prices inched up w-o-w owing to increased domestic demand in tandem with increased stainless-steel production and prices as a result of good buying during the festive season. According to SteelMint’s assessment on 29 September, ferro chrome (HC 60%) prices were at around INR 95,800/t exw-Jaipur, up by INR 1,300/t w-o-w.
Ferro silicon
Indian ferro silicon (70%) prices fell by INR 1,600/t w-o-w to around INR 140,000/t exw Guwahati due to moderate demand, as per SteelMint’s assessment on 30 September 2022. Meanwhile, Bhutan’s offers were at around INR 140,000/t on exw basis. Majority of buyers were waiting for new price announcement from Bhutan for October dispatches, leading to slow buying in the spot market.
Trade
SteelMint recorded bulk trade of around 8,400 t of ferro alloys this week, out of which manganese deals comprised around 5,400 t, 1,700 t were of ferro chrome and 1,300 t of ferro silicon.
Tender and auction
- Vedanta-FACOR’s ferro chrome auction’s H1 prices for 10-150 mm lot were INR 94,500/t (for bigger lot) and INR 94,700/t (for smaller lot) ex-Jajpur, Odisha on 27 September.
- MOIL conducted an auction for 5,575 t of different grades of high-carbon (HC) ferro manganese (2,000 t), ferro manganese slag (1000 t) and manganese ore of dioxide grade (2,575 t) on 28 September from its Balaghat plant. Around 350 t of HC ferro manganese (70-72%) were booked at INR 73,550/t.
- SAIL floated a purchase tender for 400 t of high-carbon (HC) ferro chrome (Cr-60%, +/-3%, 10-30mm) for its Alloy Steel Plant in Durgapur, West Bengal. The due date for submission of the bids is 7 October.
- State-owned SAIL invited a purchase tender for 16,963 t of silico manganese (60-15) for its Rourkela Steel Plant, Odisha. The last date for bid submission is 10 October.
- SAIL floated a purchase tender for 95 t of high-carbon (HC) ferro chrome (Cr-60%, +/-3%, 10-30mm) for its Bokaro Steel Plant for four months. The due date of bid submission is 8 October.
- State-owned NMDC has issued a purchase tender for 750 t of HC ferro manganese (Mn70%, 25-100 mm- lumps) and 90 t of ferro silicon (Si 70%, 25-50 mm- lumps) for its Nagarnar plant in Jagdalpur, Chhattisgarh. The last date of bid submission is 14 October.
- Rashtriya Ispat Nigam Ltd (RINL) invited bids for procurement of 2,200 t (10-100 mm) of HC ferro chrome (60%) for six months from purchase order date. The last date of bid submission is 5 October.
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