Global ferro alloys market sentiments continued to weaken this week which led to a decrease in domestic prices, as per SteelMint assessment.
Manganese ore
Global manganese ore import prices of all grades dropped by around 10% w-o-w to $4.15/dmtu for grade 37%, $4.9/dmtu for grade 44%, and $5.4/dmtu for grade 46%. Prices of manganese ore declined as a result of reduced production and low demand. Price declines for manganese ore are expected to persist in the near future.
IEX power prices
According to IEX (Indian Energy Exchange) weekly average spot prices (28 August-3 September) in the day-ahead market increased by 46% w-o-w to INR 7.609 unit as against INR 5.196/unit in last week due to hike in coal prices.
Silico manganese
Exported silico manganese prices were stable on a weekly basis to $970/t for 60-14 grade and 65-16 grade from Haldia and Vizag ports price were stable to $1,070/t, amid low inquiries from importing countries. Meanwhile, silico manganese prices dropped by 2% w-o-w to INR 77,050 /t ex-Durgapur, INR 77,025/t ex-Vizag and INR 77,600/t ex-Raipur. Market uncertainty led to the decline in prices during this period of low demand.
Ferro manganese
Exported ferro manganese prices were stable at $1,000/t for HC 70% and HC 75% grade at $1,077/t. Meanwhile, domestic ferro manganese prices fell by 1% w-o-w to INR 79,175/t ex-Durgapur, while ex-Raipur prices dropped to INR 79,200/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 1 September, ferro chrome prices were hovering around INR 94,000/t exw-Jajpur, under pressure following the sharp reduction in Chinese tender prices as buyers resisted purchasing. However, due to selling pressure and slow export transactions, some producers sold material at lower prices. Meanwhile, buyers were negotiating at lower prices, which kept prices under pressure.
Ferro silicon
Indian ferro silicon prices fell by INR 3,400/t w-o-w to INR 146,600/t exw Guwahati. Demand was moderate and Guwahati producers were not willing to reduce offers but Bhutan was offering INR 145,000/t exw. This compelled some Guwahati producers to follow suit amid selling pressure.
Trade
SteelMint recorded trades of around 3,500 t of bulk ferro alloys this week out of which manganese alloys was around 3,000 t.
Tenders and auctions
- FACOR, a Vedanta subsidiary, held a ferro chrome auction on 1 September. The big and small lots of 10-150mm were booked at INR 92,700/t and INR 92,800/t ex-Jajpur respectively, close to the floor price.
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