Ferro alloys prices exhibited a mixed trend this week, with manganese alloys and ferro silicon prices falling marginally. However, ferro chrome prices increased due to shortage of supplies and surge in demand. Meanwhile, mixed sentiments kept international ferro alloys demand largely soft, SteelMint notes.
Manganese ore
Global manganese ore import prices across grades were rangebound 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 rangebound. Despite selling pressure from miners, manganese ore prices should remain weak in the short term.
IEX power prices
According to IEX (Indian Energy Exchange) weekly average spot prices (18-24 September) in the market remained stable w-o-w at INR 4.486/unit due to improved power availability supported by higher hydro-power generation.
Silico manganese
Exported silico manganese prices were down 1% w-o-w to $924/t for 60-14 grade and for 65-16 grade prices from Haldia and Vizag ports were down 1% to $1,029/t amid low inquiries from importing countries.
On the other hand, silico manganese prices dropped 1% w-o-w to INR 73020 /t ex-Durgapur, INR 73,000/t ex-Vizag and INR 73,520/t ex-Raipur. Prices of the material declined owing to the downtrend in the domestic steel market.
Ferro manganese
Exported ferro manganese prices were also down 1% at $944/t for HC 70% and HC 75% grade marginally down by 1% to $1,038/t. Meanwhile, domestic ferro manganese prices fell by 1% w-o-w to INR 75,700/t ex-Durgapur, while ex-Raipur prices dropped to INR 75,900/t. The lack of demand for special steel continues to result in the decline in ferro manganese prices.
Ferro chrome
According to SteelMint’s assessment on 22 September, producers were offering ferro chrome (HC60%) at around INR 94,000-95,000/t exw Jajpur. Indian ferro chrome smelters tried to push up prices to reduce losses amid rising inquiries in the domestic market. High production cost due to hike in chrome ore prices together with the rise in stainless steel prices w-o-w forced producers to raise their offers.
Ferro silicon
Indian ferro silicon prices inched down as buyers refrained from booking material at higher prices. A majority of Indian producers were offering at around INR 141,000-142,000/t exw. However, some producers kept their offers firm compared to last week but were unable to conclude deals. Offers from Bhutan were at around INR 143,000/t, as assessed on 23 September.
Trade
SteelMint recorded bulk trades of around 13,300 t of ferro alloys this week, out of which manganese deals comprised around 7,400 t, while 2,700 t of ferro chrome and ferro silicon 3,200 t deals were recorded.
Tender and auction
- OMC booked 33,100 t of chrome ore out of 85,100 t in the auction on 19 September 2022. The entire quantity of higher grade (Cr2O3: 52-54%) ore of South Kaliapani mines was booked at a premium of 6-8% over base price.
- SAIL’s Chandrapur Ferro Alloys Plant booked a single lot of 100 t silico manganese for Mn: 57% grade at INR 62,700/t and auction for 600 t of silico manganese (Mn 53-57%, 0-3mm, 3-10mm) conducted on 20 September.
- Vedanta’s subsidiary Ferro Alloys Corporation Limited (FACOR) scheduled an auction of 10,000 t of ferro chrome slag (jigging and granulated slag) on 26 September.
- MSTC conducted an e-auction for 19,150 t of different grades of manganese ore (Mn 26-34%) on behalf of Sandur Mines (SMIORE) on 23 September. The entire quantity was booked and majority of the material was at base price.
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