Demand for ferro alloys in the domestic market improved this week, pushing prices up. Meanwhile, ferro silicon prices dropped slightly this week. However, demand for special steels is still moderate. In contrast, manganese alloys and ferro chrome prices have increased because the major mills have been quoting higher prices. There were relatively few overseas bulk requests for manganese alloys, which resulted in an improvement in ferro alloys demand, SteelMint noted.
Manganese ore
Global manganese ore import prices across grades were stable w-o-w at $4.2/dmtu for Mn37%, $4.6/dmtu for Mn44%, and $4.95/dmtu for Mn46%. Manganese ore prices remained stable as a result of moderate demand and low production. In the short term, manganese ore prices may remain stable despite selling pressure from miners.
IEX power prices
According to the Indian Energy Exchange (IEX), weekly average spot prices (9-15 October, 2022) in the day-ahead market remained almost stable at INR 3.73/unit against INR 3.81/unit in the previous week. This followed a steep decline in power consumption post-festivities, as it fell to 3,722 million unit/day (MU/day) from the highs of 4,141 MU/day recorded in the beginning of the month.
Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, edged lower. The 60-14 grade was up by 1% w-o-w to $896/t, while the 65-16 grade increased by 2% to $1000/t amid moderate enquiries from overseas.
On the other hand, silico manganese prices increased by 2% w-o-w to INR 71,425/t ex-Durgapur, INR 72,660/t ex-Vizag, and INR 73,260/t ex-Raipur. A rising price for silico manganese contributed to mills reducing production to recoup their production costs after improving domestic manganese alloys demand.
Ferro manganese
Exported ferro manganese prices were stable at $906/t FOB for HC70%. Prices of HC75% grade were up by 1% to $998/t. Meanwhile, domestic ferro manganese prices inched up by 1% w-o-w to INR 74,740/t ex-Durgapur, while ex-Raipur prices were marginally up by 1% to INR 74,860/t. Demand for special steels and stainless steels continued to be improving, driving up the price of ferro manganese.
Ferro chrome
Domestic ferro chrome prices rose by 3% (HC60%), as demand was moderate amid good demand from export and domestic markets. In addition, ferro chrome prices are also supported by the positive response to Vedanta’s recently concluded auction. The ferro chrome market is receiving inquiries from exporters. Chinese buyers stepped up their purchasing after Golden Week holidays. Producers started offering to China at around 95 cents/lb, CIF China, up by 4% w-o-w, as assessed on 13 October. According to SteelMint assessment on 13 October, ferro chrome producers were offering HC60% material at around INR 99,400/t exw Odisha.
Ferro silicon
According to SteelMint’s assessment on 14 October, Bhutanese producers started offering ferro silicon (70%) at INR 132,500/t. Indian ferro silicon prices inched down owing to slow procurements as buyers negotiated hard and traders were hesitant to buy because they expected prices to fall further. However, some manufacturers were out of stock because they were too busy catering to government tenders.
Trade
SteelMint recorded bulk trades of around 19,100 t of ferro alloys this week, out of which manganese deals comprised around 10,000 t, 75,00 t were of ferro chrome and 1600 t of ferro silicon.
Tender and auction
- SAIL’s Chandrapur Ferro Alloys Plant conducted an auction for 500 t of silico manganese (Mn 53-57%, 0-3mm, 3-10mm) on 14 October. 2022. About 300 t of Mn52% and 57% grades were booked at INR 52,650/t and INR 62,410/t respectively on 14 Ocotober.
- India’s ferro chrome prices were up by INR 2,700/t exw w-o-w amid good demand from export and domestic markets. Meanwhile, Vedanta’s ferro chrome auction concluded on 10 October at 5% premium from the base prices.
- Odisha Mining Corporation (OMC) will offer 88,875 t of chrome ore (32-54% Cr2O3) in an auction to be held on 19 October.
- Major Chinese steelmaker, HBIS Group, has raised its silico manganese tender prices by RMB 200/t ($28/t) to RMB 7,550/t ($1,054/t) for October 2022 deliveries.
- ArcelorMittal Nippon Steel India (AM/NS India) has floated a supply tender for 4,000 t of medium-carbon silico manganese (10-50 mm, Mn 60-14,) from its Gujarat-based plant. The last date of bid submission is 17 October.
- Major Chinese steelmaker, HBIS Group, concluded its ferro silicon (72%) tender at RMB 8,850/t ($1,235/t), up by RMB 650/t ($91/t) m-o-m from September 2022 price.
- Bharat Heavy Electricals Limited (BHEL) concluded a reverse auction for 450 t of LC ferro chrome (Cr:65-75%, C: 0.1% max, Size: 10-50 mm) on 5 October.
Leave a Reply