This week, ferro alloys prices increased a little due to erratic steel market conditions and modest domestic demand.
However, prices have risen due to a minor increase in export demand for ferro alloys. However, low demand for ferro chrome kept prices steady. Increasing orders for manganese alloys from overseas was observed, however.
Manganese ore
Prices of all grades of imported manganese ore increased by 1% w-o-w reaching $4.2/dmtu for Mn37%, $4.7/dmtu for Mn44%, a 2% w-o-w rise, and $5.3/dmtu for Mn46%, up 7% w-o-w.
Prices of manganese ore increased due to the global energy crisis and modest demand. Prices may fluctuate soon as miners put more pressure on the market to sell their material.
In addition, after the government withdrew the steel export tax, Indian manganese alloy suppliers have attempted to enhance their positions despite consistently insufficient activity.
Market participants, however, are dubious that this information is a reliable enough justification for higher ferro alloys costs.
IEX power prices
According to IEX (Indian Energy Exchange) weekly average spot prices (20-26 November) in day ahead market saw a marginal uptick to INR 4.73/unit as against INR 4.55/unit in previous week. This was helped by an ease in buying pressure due to improved coal inventory position at thermal power plants as buyers made a return to procure electricity from the exchange.
Silico manganese
Prices for silico manganese exports from the ports of Haldia and Vizag rose 1% on-week. The 60-14 grade increased by 1% w-o-w to $928/t, while the 65-16 grade increased by 2% to $1032/t. Price increases were the consequence of an increase in international enquiries over the previous week, although there has been little deal conversion.
On the other hand, silico manganese prices inched up by 1% w-o-w to INR 73,920/t ex-Durgapur, INR 73,840/t ex-Vizag, and INR 74,380/t ex-Raipur.
Prices have increased since last week as a result of fluctuating sentiments over steel prices, which also increased prices of silico manganese. The number of enquiries for manganese alloys from importing nations remained modest.
Ferro manganese
Exported ferro manganese prices remained stable at $926/t for HC70%. Prices of HC75% grade were stable at $1,024/t. Meanwhile, domestic ferro manganese prices decreased by 2% w-o-w to INR 75,820/t ex-Durgapur, while ex-Raipur was assessed at INR 75,480/t. Weak demand for stainless steel and special steel led to no change in ferro manganese prices.
Ferro chrome
Indian ferro chrome prices fell w-o-w amid muted demand. According to SteelMint’s assessment on 24 November, smelters were offering at around INR 98,300-99,500/t exw Jajpur, a marginal drop of around INR 1300/t w-o-w as ferro chrome prices fell marginally w-o-w due to sluggish demand and hard bargaining by buyers and weak Chinese demand also continued to weigh on ferro chrome prices.
The majority of buyers were in a wait-and-watch mode in anticipation of a further fall in prices as inventory piled up with producers. Moreover, weak Chinese demand also continued to weigh on ferro chrome prices. As a result, despite high production costs, producers were forced to lower their offers.
Ferro silicon
Indian ferro silicon prices remained stable w-o-w amidst moderate supply-demand conditions. On 24 November, Guwahati-based producers were offering ferro silicon Si-70% grade at INR 122,300/tonnes(t)-exw, nearly stable from the previous week prices, according to SteelMint’s assessment.
Bhutan’s offers remained nearly constant at INR 125,000/t exw. Major sellers, on the other hand, have already reserved large quantities through tenders held by one of the largest steel producers last week. However, there was enough material on the market.
Trades
SteelMint recorded bulk trades of around 9,500 t of ferro alloys this week, out of which manganese deals comprised around 5,800 t, ferro chrome 2,700 t, and ferro silicon 1,000 t.
Tenders and auction
- Steel Authority of India Limited (SAIL) concluded its procurement tender for 13,462 t of ferro silicon (70%) for its six different plants through reverse auction on 21 November.
- ArcelorMittal Nippon Steel India (AM/NS India) has floated a supply tender for 4,000 t of medium-carbon silico manganese (fine size: 10 to 50 mm; Mn: 60%, Si- 14%) for its Gujarat-based plant.
- ArcelorMittal Nippon Steel India (AM/NS India) has floated a purchase tender for 400 t of ferro silicon (Si-70%, size: 10-50 mm) for July delivery. The payment terms are 30 days credit or 100% CAD. The last date of bid submission is 27 November.
- Bharat Heavy Electricals Limited (BHEL) has floated a purchase tender for 500 t of LC ferro chrome (Cr:65-75%, C: 0.1% max, Size: 10-50 mm). The material of 150 t each will be delivered for the first and third months and 200t will be delivered second month after the purchase order date, sources added. The due date for submission of the bids is 2 December.
- South32 has started offering manganese ore for Jan’23 shipments. The miner has increased Australian block (Mn45%) offers marginally by $0.12/t dmtu to $4.82/t dmtu amid energy crisis in South Africa.
- SAIL’s Rourkela Steel Plant (RSP) concluded a reverse auction for 16,963 t of silico manganese (60-15) on 23 Nov’22. The material was booked at around INR 76,325/t FOR (excluding GST) on 10 days’ credit basis, sources informed.
- Chinese stainless steel major, Taiyuan Iron and Steel Corporation (TISCO), has finalised the bidding price of ferro chrome (LC 55%) for Dec’22 delivery at RMB 13,550/t ($1,890/t), down by 200 yuan m-o-m.
- State-owned MSTC has issued a notice to conduct an auction for 35,784 t of manganese ore of different grades (Mn: 26-34%) on behalf of Sandur mines (SMIORE), Karnataka. The material is offered in 71 lots, and the auction will be held on 30 Nov’22, sources informed.
- SAIL’s Chandrapur Ferro Alloys Plant (CFP) conducted an auction for 600 t of silico manganese ((3-10mm/58%mn) on 25 Nov’22. About 300 t of Mn: 58% grade were booked at INR 64,540/t.
Leave a Reply