Prices of ferro alloys fell this amid a general decline in domestic demand and mixed sentiments. Demand for special steels continued to be low, impacting demand. Overseas orders for manganese alloys declined, resulting in lower ferro alloys demand.
However, market players expected ferro chrome prices to rise globally owing to power outages in South Africa.
Meanwhile, benchmark ferro silicon prices increased leading to an across-the-board rise.
According to SteelMint, limited international inquiries for manganese alloys led to a comparatively low demand for ferro alloys.
Manganese ore
Global manganese ore import prices for higher grade (Mn: 44-46%) across grades were nearly stable w-o-w amid mixed market sentiments. Prices of Mn37% grade were at $4.5/dmtu, Mn44% stood at $5.33/dmtu, and Mn46% grade was offered at $5.8/dmtu.
IEX power
According to Indian Energy Exchange (IEX), the weekly average spot prices (15-21, January) in the day-ahead-market registered a correction of 18% w-o-w to INR 6.457/unit as against INR 7.849/unit last week. The low-price discovery was supported by slight ease in power demand which lessened the gap between purchase-sell bids.
Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, were nearly stable w-o-w. The 60-14 grade went down by 2% w-o-w to $988/t, while the 65-16 grade was offered at $1,090/t, also down 2% w-o-w. Due to fewer queries last week and limited demand from abroad, prices decreased.
However, weekly average prices of silico manganese in the domestic market dropped 2% w-o-w to INR 78,790/t ex-Durgapur, INR 79,330/t ex-Raipur, and INR 78,410/t ex-Vizag. Lack of local demand for silico manganese and liquidity issues drove down prices.
Ferro manganese
In ferro manganese, export prices of HC70% fell marginally by 3% w-o-w to $974/t. Prices of HC75% were at $1,067/t, dipping 1% w-o-w. Meanwhile, domestic ferro manganese prices dropped by 1% w-o-w to INR 79,640/t ex-Durgapur, while ex-Raipur prices were assessed at INR 79,910/t. Due to the restricted demand for special steel and the imbalance between supply and demand, prices of ferro manganese were somewhat depressed.
Ferro chrome
According to SteelMint’s assessment on 19 January, ferro chrome producers offered at around INR 110,000-111,000/t exw-Jajpur. However, some producers closed deals at around INR 108,000/t exw prior to Vedanta’s auctions. Market participants were anticipating an impact on ferro chrome prices globally due to production cuts amid the power crises in South Africa. The power situation is grim in Zimbabwe and supporting the prices. Furthermore, the hike in chrome ore prices also boosted ferro chrome prices.
Ferro silicon
Indian ferro silicon prices inched up w-o-w on expectations from Bhutan’s producer that the BIS policy will not be extended further. In addition, Bhutan’s producers received adequate inquiries from the European market. This also influenced smelters to increase their offers. According to SteelMint’s assessment on 20 January, some of Bhutan’s producers’ offers hovered at around INR 125,000/t exw, while Guwahati- prices ranged over INR 120,000-125,000/t exw.
Trade
SteelMint recorded bulk deals of around 7,000 t of ferro alloys this week. Out of this, manganese deals comprised around 3,500 t, ferro chrome 2,500 t, and ferro silicon around 1,000 t.
Tenders and auctions
- Vedanta’s subsidiary, Ferro Alloys Corporation Limited (FACOR), scheduled an auction for high-carbon ferro chrome of different grades and sizes on 17 January. At the last auction on 6 January, the bigger lot of 10-150 mm ferro chrome fetched an H1 price of INR 107,600/t which was higher by 5% than the base price.
- OMC’s chrome ore auction from its South Kaliapani and Sukrangi chromite mines in Odisha received a favourable response. Out of 80,000 t put up for auction, 59,600 t were booked and the high-grade material (52-54%) fetched a premium of 16% over the base price. Limited quantity of high grade ore was put up for auction, of which two grades were subjected to aggressive bidding, sources informed.
- Vedanta-FACOR held a ferro chrome auction on 17 January. The bigger lot of 10-150mm fetched an H1 price of INR 110,300/t ex-Jajpur, higher by 4% than the base price while the smaller lot of 10-150mm was booked at INR 110,450/t. The auction witnessed active participation as ferro chrome prices are anticipated to rise further with the news of possible curtailment of electricity supply from South Africa, sources informed.
- SAIL floated a purchase tender of 13,000 t of HC silico manganese (grade: 60-15, size:40-100 mm) for its Bokaro Steel Plant (BSL). The last date for bid submission is 30 January and the bid offer is valid for 120 days from the date of auction.
- State-owned SAIL issued a purchase tender for 10,000 t of HC ferro manganese (Mn70%, 25-100 mm) for its Bokaro Steel Plant (BSL), Durgapur. The last date for bid submission is 28 January.
- ArcelorMittal Nippon Steel India (AM/NS India) floated a request for quotation for 60 t of ferro vanadium (10-50 mm, V: 75-80%) from its Gujarat-based plant. The last date of bid submission is 25 January. The delivery is scheduled for February-March, 2023 and the payment terms are 30 days credit/100% CAD (import).
- Rashtriya Ispat Nigam Ltd (RINL), the corporate entity of Vizag Steel, invited bids for procurement of 300 t (10-50 mm) of LC ferro manganese (75%).
- State-run Rashtriya Ispat Nigam Ltd (RINL) concluded a reverse auction for 840 t of low carbon (LC) ferro manganese (grade:92%min and size: 10-60 mm) on 17 January.
- ArcelorMittal Nippon Steel India (AM/NS India) floated a supply tender for 2,000 t of medium-carbon (MC) ferro manganese (Mn: 78%, Size: 10-50mm) from its Gujarat-based plant.
- ArcelorMittal Nippon Steel India (AM/NS India) floated a purchase tender for 500 t of ferro silicon (Si-70%, size: 10-50 mm) for February-March delivery. The last date for bid submission is 29 January. The payment terms are 30 days credit or 100% CAD.
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