Growing demand for ferro alloys in the domestic market drove up prices this week. Meanwhile, ferro silicon prices saw a slight fluctuation. However, demand for special steels is still moderate. On the other hand, prices for ferro chrome and manganese alloys climbed as a result of higher quotes from the major mills. Fewer international bulk orders for manganese alloys led to an increase in demand for ferro alloys, SteelMint notes.
Manganese ore
Global manganese ore import prices across grades were rangebound with nominal fluctuation by 1% w-o-w at $4.15/dmtu for Mn37%, $4.5/dmtu for Mn44%, and $4.85/dmtu for Mn46%. Prices of manganese ore were rangebound due to moderate demand and low production. Despite slight selling pressure, manganese ore prices may remain stable in the short term. In addition, the strike in South Africa has boosted the market, whereas the improvement in demand is limited.
IEX power prices
According to Indian Energy Exchange (IEX) weekly average spot prices (16-22 October) in day ahead market recorded a marginal rise by 9% at INR 4.047/unit w-o-w due to the pick up in commercial activities ahead of Diwali.
Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, inched up by 4% w-o-w. The 60-14 grade was up by 3% w-o-w to $931/t, while the 65-16 grade increased by 4% to $1034/t amid increased enquiries from overseas last week.
On the other hand, silico manganese prices edged up by 6% w-o-w to INR 77,420/t ex-Durgapur, INR 75,8000/t ex-Vizag, and INR 77,520/t ex-Raipur. Prices have been rising since last week due to shortage in supplies and increase in domestic and overseas demand.
Ferro manganese
Exported ferro manganese prices were rangebound at $910/t for HC70%. Prices of HC75% grade were up by 1% to $1,006/t. Meanwhile, domestic ferro manganese prices inched up by 1% w-o-w to INR 75,520/t ex-Durgapur, while ex-Raipur prices were up marginally by 1% to INR 75,680/t. There was an increase in demand for special and stainless steels, which resulted in ferro manganese prices increasing.
Ferro chrome
Due to the positive response to OMC’s chrome ore auction on 19 October, Indian ferro chrome prices rose by around INR 3,600/tonne (t) w-o-w. On 20 October, SteelMint assessed Indian ferro chrome prices hovering around INR 103,000/t exw Jajpur. Furthermore, stainless steel producers were engaged in panic buying in anticipation of a rise in ferro chrome prices. Moreover, as supplies of ferro chrome became scarce due to a drop in output due to Covid in some parts of the country, enquiries from China increased. This boosted ferro chrome prices as well.
Ferro silicon
SteelMint assessed on 21 October that Guwahati producers’ offers were around INR 130,400/texw, down INR 3,600/t w-o-w due to weak demand. Meanwhile, Bhutan producers were offering at around INR 133,200/t exw because the majority of Bhutan’s suppliers were sold out, and the rest were offering higher than offers floated by Guwahati-based supplies.
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 ferro chrome and 1,600 t ferro silicon.
Tender and auction
- MOIL will conduct an auction for 6,650 t of manganese products (HC-ferro manganese of 62-72% grade, ferro manganese slag and manganese ore of dioxide grade) on 28 October from its Bhandara mines and Balaghat plant.
- OMC’s chrome ore auction from its South Kaliapani and Sukrangi chromite mines in Odisha received favourable response on 19 October. Out of 84,500t, approximately 50,400t were booked at a premium of INR 2,200-5,400/t for various grades and lots.
- State-owned SAIL invited a purchase tender for 400 t of silico manganese (V: 50% min, size:25-70mm) for its Bhilai Steel Plant, Chhattisgarh for Q3FY23. The last date for bid submission is 2 November.
- SAIL’s Bhilai Steel Plant (BSP) booked 800 t of ferro chrome (Cr:60%, Size:25-70mm, Si: 4% max) at around INR 130,400/t FOR through reverse auction on 18 October.
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