Prices of ferro alloys in the domestic market remained rangebound this week due to limited demand. Demand remained soft due to mixed sentiments in both the domestic and international markets.
Silico manganese prices declined marginally this week amid modest steel demand in the domestic market. However, ferro chrome prices in India continued to improve as a result of enquiries from European countries triggered by supply disruption in major exporting countries. Manganese ore prices were marginally affected by bearish demand for manganese alloys globally.
Manganese ore
Global manganese ore import prices for Mn: 44-46% dropped by 2% w-o-w. Prices of Mn37% grade were at $4.65/dmtu, down 2%; Mn44% stood at $6.15/dmtu, while Mn46% grade was offered at $6.6/dmtu.
IEX power
According to Indian Energy Exchange (IEX), the weekly average spot prices (12–18 February) in day-ahead-market recorded a surge of 46% w-o-w to INR 7.351/unit as against INR 5.021/unit last week.
The market saw aggressive power procurement from the buyers, with purchase bids exceeding that of sell bids by 1.5 times amid the continual uptick in power demand.
Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, were nearly stable w-o-w. 60-14 grade remained stable at $980/t, while 65-16 material was offered at $1,076/t, up 1% w-o-w. Last week, prices were rangebound due to mixed sentiments and limited overseas demand.
Meanwhile, weekly average prices of silico manganese in the domestic market dropped 1% w-o-w to INR 77,220/t ex-Durgapur, INR 76,700/t ex-Raipur (down 1%), and INR 76,740/t ex-Vizag, down 1% w-o-w. Lack of local demand for silico manganese and liquidity issues drove prices lower.
Ferro manganese
Export prices of HC70% ferro manganese were nearly stable w-o-w to $971/t. Prices of HC75% were at $1,066/t, up 1% w-o-w.
However, domestic ferro manganese prices were up 1% w-o-w at INR 80,540/t ex-Durgapur, an increase of 1%, and ex-Raipur prices were at INR 80,780/t. Due to moderate demand for special steels and the imbalance in supply and demand, prices of ferro manganese remained rangebound.
Ferro chrome
Indian ferro chrome prices further improved this week due to numerous enquiries from European countries owing to supply disruption in South Africa and Turkiye. According to SteelMint’s assessment on 16 February, ferro chrome prices were hovering at INR 125,150/t exw Jajpur, an increase of INR 3,650/t w-o-w. Furthermore, tight supply of chrome ore together with good demand in China also boosted ferro chrome prices.
Ferro silicon
Domestic ferro silicon prices remained firm w-o-w amid moderate demand. However, a few producers got good realisations by focusing solely on the export market, mainly Europe. Meanwhile, Guwahati-based producers were offering at around INR 125,500/t exw with marginal fluctuation for three consecutive weeks. Bhutan’s offers remained firm at INR 126,000/t as assessed on 17 February.
Trade
SteelMint recorded bulk deals of around 11,500 t of ferro alloys this week. Out of this, manganese deals comprised 5,000 t, ferro chrome 5,000 t, and ferro silicon around 1,500 t.
Tenders and auctions
- Rashtriya Ispat Nigam Ltd (RINL), the corporate entity of Vizag Steel Plant, invited bids to procure 37,000 t of silico manganese (grade: 60-15 and size: 25-100 mm). The last date of bid submission is 20 February.
- Bharat Heavy Electricals Limited (BHEL) concluded a reverse auction for 105 t of ferro silicon (Si:70% min, Size: 40-150 mm) on 10 February. The material was booked at around INR 158,304/t FOR, inclusive of all taxes. Excluding GST and GEM portal charges, prices are at around INR 133,489/t FOR, sources informed.
- State-run Rashtriya Ispat Nigam Ltd (RINL), the corporate entity of Visakhapatnam Steel Plant, invited bids to procure 4,000 t of high-carbon ferro manganese (grade:70% and size: 25-50 mm) on 25 February. Bids are valid for 90 days from the submission date. SteelMint’s assessment of ferro manganese prices stood at INR 81,000/t exw-Raipur on 14 February.
- Bharat Heavy Electricals Limited (BHEL) concluded a reverse auction for 10 t of ferro vanadium (V50% min, low phosphorus, low sulphur) on 13 February. The material was booked at around INR 2,199,510/t FOR, inclusive of all taxes. Excluding GST and GEM portal charges, prices were at around INR 1,854,718/t FOR, sources informed.
- The Odisha Mining Corporation’s (OMC’s) chrome ore auction, held on 16 February, received a favourable response. Out of 53,500 t put on offer, approximately 33,800 t was booked. The high-grade material (52-54%) fetched a premium of 17-18% over the base price.
- State-owned SAIL-IISCO Steel Plant, Burnpur, concluded a reverse auction for 4,000 t of silico manganese (60-15, size:25-50mm) on 11 February. The material was booked at INR 68,103/t on FOR basis, inclusive of GEM portal charges. Silico manganese prices stood at INR 77,500/t exw-Durgapur on 10 February.
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