Indian domestic ferro alloys market saw a slight improvement in demand this week. Prices of silico manganese increased slightly while ferro chrome prices inched up as the China’s market started gaining momentum. However, ferro silicon prices fell marginally due to limited trade.
Manganese ore
Global manganese ore import prices across grades increased w-o-w. Prices of Mn37% rose 4% to $4.4/dmtu, Mn44% stood at $4.86/dmtu, up 2% and and Mn46% edged up 2% to $5.2/dmtu. Imported prices increased as a result of rising freight costs for shipments of metal and mining material.
As miners deal with high operational and material handling costs, it is probable that manganese ore prices could trend upward in the near future.
IEX power prices
According to Indian Energy Exchange (IEX), the weekly average spot prices (11 December-17 December) in day ahead market decreased by 7% w-o-w to INR 4.454/unit as against INR 4.808/unit last week. The sharp correction in prices was led by waning power demand with the onset of winter season.
Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, were nearly stable w-o-w. The 60-14 grade price was stable w-o-w at $908/t, while the 65-16 grade was offered at $1,000/t, down by 1%. Last week, there was an increase in inquiries from abroad, but limited deals were closed, resulted in prices moving down.
On the other hand, silico manganese prices in the domestic market were up 1% w-o-w to INR 73,840/t ex-Durgapur, INR 73,840/t ex-Vizag, and INR 73,760/t ex-Raipur. Prices increased marginally w-o-w due to an improvement in demand.
Ferro manganese
Ferro manganese export prices were nearly stable w-o-w at $911/t for HC70%. Prices for HC75% were at $1,008/t, down 1% w-o-w. However, domestic ferro manganese prices were stable w-o-w to INR 74,200/t ex-Durgapur, while ex-Raipur prices were assessed at INR 74,380/t. Prices remained steady because there was little demand for special steel.
Ferro chrome
Indian ferro chrome prices increased w-o-w as prices in China rose and enquiries increased. Furthermore, several export deals were signed, with realisations far exceeding those achievable in the domestic market. This resulted in an increase in domestic offers, and buyers gradually became willing to accept higher prices. On 15 December, prices were around INR 97,500/t exw-Jajpur.
Ferro silicon
Ferro silicon prices in the domestic market fell slightly due to limited trade, with first-time buyers cautious of booking costlier materials. Furthermore, in the face of market volatility, participants exercised caution when procuring material. According to SteelMint, ferro silicon (70%) prices hovered at around INR 118,700-123,500/t exw- from both Guwahati and Bhutan on 16 December. Despite price reductions, domestic ferro silicon demand remained low. A few buyers remained on the fence, waiting for prices to fall even further.
Trade
SteelMint recorded bulk deals of around 15,800 t of ferro alloys this week, out of which manganese deals comprised around 11,300 t, ferro chrome 3,500 t and ferro silicon 1,000 t.
Tender and auction
- State-owned MSTC issued a notice to conduct an auction for 33,264 t of manganese ore of different grades (Mn; 26-34%) on behalf of Sandur mines (SMIORE), Karnataka. The material is offered in 63 lots and the auction will be held on 15 December.
- Merafe, South Africa’s major ferro chrome producer, announced that its price, which is the benchmark for Europe, will be at 149 cents/lb for Q1CY23, unchanged from the fourth quarter prices.
- Vedanta-FACOR held a ferro chrome auction on 15 December. The larger lot of 10-150 mm was booked at INR 98,600/t exw, up by 3% over the base price.
- Odisha Mining Corporation’s (OMC’s) chrome ore auction from its South Kaliapani and Sukrangi chromite mines in Odisha received a favourable response today. Out of 53,600 t, approximately 24,100 t were booked.
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