The ferro alloys market showed an uptrend this week, supported by moderate increase in domestic demand while the same from the overseas markets remained subdued.
Manganese ore
Global manganese ore imports fell by 2% w-o-w to $4.5/dmtu for grade 37% while grade 44% prices inched down by 2% to $5.85/dmtu and grade 46% by 2% to $6.25/dmtu. Overall, the manganese ore market was sluggish due to weak downstream alloys sentiments.
Silico manganese
Exported silico manganese (60-14 grade) prices remained range-bound w-o-w at $959/t and 65-16 grade was offered at $1,069/t at Indian ports amid lack of demand and inquiries from importing countries.However, domestic silico manganese prices were inched up by 3% to INR 78,600/t ex-Durgapur, at INR 78,238/t ex-Vizag, up by 4% and at INR 79,250/t ex-Raipur (up 3%).
Ferro manganese
Exported ferro manganese prices were stable with marginal fluctuations. Weekly average prices for HC70% were at $1,005/t, and up 1% to $1,070/t for HC75% grade. However, domestic ferro manganese prices were up by 1% to INR 80,175/t ex-Durgapur and INR 80,625/t ex-Raipur.
Ferro chrome
Indian ferro chrome (HC60%) prices remained range-bound this week owing to muted demand. Producers kept their prices firm as they received less inquiries from the domestic market. Most of the domestic buyers were not in a hurry to conclude deals as they were waiting for Vedanta’s ferro chrome auction. This kept the prices stable at around INR 94,500/t exw-Jajpur, assessed on 18 August.
Ferro silicon
According to SteelMint’s assessment on 19 August, Guwahati-based ferro silicon (70%) producers were offering at around INR 148,600/t exw, up by INR 4,350/t w-o-w owing to supply shortage. High electricity costs also influenced producers to increase their offers. Meanwhile, Bhutan’s offers were at around INR 150,000/t exw.
IEX power prices
A resumption in industrial activity post-monsoon helped boost demand for spot electricity which had fallen head-long in recent weeks. Indian Energy Exchange (IEX) weekly average spot prices (14 August- 20 August) in the day-ahead market increased by 25% w-o-w to INR 4.660/unit as against INR 3.740/unit last week.
Trade
SteelMint recorded around 10,000 t of bulk ferro alloys deals this week out of which manganese alloys comprised around 9,500 t.
Tenders and auctions
- SAIL’s Bokaro Steel Plant (BSL) concluded a reverse auction for 8,500 t of silico manganese (60-15) at around INR 68,506/t on FOR basis on 11 August.
- SAIL booked 200 t of silicon manganese of Mn:57% grade at around INR 65,670/t- 65,570/t in the recent auction held on 12 August and 500 t of silico manganese (Mn 53-57%, 0-3mm, 3-10mm) from its Chandrapur ferro alloys plant.
- SAIL invited a purchase tender for 14,600 t of silico manganese (60-15) for its Durgapur Steel Plant, West Bengal. The last date for bid submission is 25 August 2022.
- Vedanta-FACOR held an auction for ferro chrome on 19 August 2022. Both bigger and smaller lots of 10-150mm size were booked at INR 94,400/t and INR 93,700 ex-Jajpur, Odisha, respectively.
- State-run miner OMC conducted an auction for 85,200 t of different grades of chrome ore on 19 August for its South Kaliapani and Sukrangi Chromite mines. Out of the total quantity, only 10,300 t (12%) were booked close to the base price.
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