Sentiments in the Indian ferro alloys market continued to remain negative due to high inventory levels held by producers. As per SteelMint’s assessment, lower transaction volumes in the export market led to oversupply in the domestic market.
Manganese ore
Global manganese ore import prices of all grades were stable at $4.15/dmtu for grade 37%, $4.9/dmtu for grade 44%, and $5.4/dmtu for grade 46%. All prices are on CNF India basis. The manganese ore market performed poorly as actual transactions were few. However, as the Mid-Autumn Festival and National Day holidays approach in China, the enthusiasm for stocking manganese ore increased towards the end of the week. Negotiations were taking place at Chinese ports. However, activity was relatively low.
IEX power prices
According to Indian Energy Exchange (IEX) weekly average spot prices (4-10 September) in the day-ahead market fell by 4% w-o-w to INR 7.301/unit as against INR 7.609/unit last week due to increased hydro and renewable energy generation that resulted in improved power availability.
Silico manganese
Exported silico manganese weekly average prices witnessed a marginal drop of 3% to $940/t for 60-14 grade, while 65-16 grade prices were at $1,050/t from Indian ports. Compared to offer prices, seaborne buyers sought material at much lower prices. Sellers were averse to selling material at such low prices, which resulted in low export transactions. Meanwhile, due to liquidity crisis, silico manganese weekly average prices fell marginally by around 2% to INR 75,400/t ex-Durgapur, INR 75,560/t ex-Vizag, and INR 75,720/t ex-Raipur.
Ferro manganese
Exported ferro manganese weekly average prices were rangebound, with a marginal drop of 1% w-o-w to $990/t for HC 70%, while HC 75% grade prices were assessed at $1,060/t. Meanwhile, domestic ferro manganese weekly average prices fell by 2% w-o-w to around INR 77,860/t-INR 78,000/t (both ex-Durgapur and ex-Raipur). Selling pressure led to the decline in ferro manganese prices.
Ferro chrome
Domestic ferro chrome prices reached the rock bottom level this week and producers were unwilling to reduce prices further. According to SteelMint’s assessment on 9 September, ferro chrome (HC60%) prices remained largely rangebound, falling marginally by INR 1,250 to around INR 92,750/t exw-Jajpur. There were enough export enquiries at offers lower than current domestic offers. Ferro chrome prices rose in China but remained lower than domestic offers. However, a dearth of deals was witnessed because the offers made by seaborne buyers were not viable for Indian smelters.
Ferro silicon
Ferro silicon prices remained rangebound this week, with only minor fluctuations amid moderate demand. Producers were reluctant to slash prices due to the high cost of production. According to SteelMint’s assessment on 9 September, producers in Guwahati and Bhutan were offering 70% grade material at around INR 145,000-150,000/t exw, while offers for 65-70% grade were at INR 143,000-145,000/t exw.
Trade
SteelMint recorded bulk trades of around 22,000 t of ferro alloys this week, out of which manganese deals comprised around 20,100 t, while 1,900 t of ferro chrome deals were recorded.
Tenders and auctions
- State-owned MSTC issued an auction notice for 32,256 t of manganese ore of different grades (Mn 24-35%) on behalf of Sandur Mines (SMIORE), Karnataka, on 12 September.
- Major Chinese steelmaker, HBIS Group, lowered its silico manganese tender prices by RMB 50/t ($7/t) m-o-m to RMB 7,350/t ($1,057/t) for September deliveries.
- SAIL’s Durgapur Steel Plant (DSP) concluded a reverse auction for 14,600 t of silico manganese (60-15) at around INR 92,000/t on FOR basis (including all charges) on 9 September.
Leave a Reply