Prices of ferro alloys fell amid mixed sentiments and a general decline in domestic demand. Special steel demand continued to be low, which negatively impacted the market. Ferro alloys demand declined as overseas orders for manganese alloys were low.
Ferro chrome prices fell as a result of sluggish demand at higher costs. As a result of selling pressure, producers were obliged to cut their offers.
Limited international inquiries for manganese alloys led to comparatively low ferro alloys demand.
Manganese ore
India’s manganese ore import prices for Mn: 44-46% dropped 3-4% w-o-w. Prices of Mn37% grade was at $4.55/dmtu, a marginal drop of 1% w-o-w; Mn44% stood at $5.8/dmtu, while Mn46% grade was offered at $6.25/dmtu. All prices are on CNF India basis. Furthermore, the Chinese manganese ore market also inched down, which impacted India’s imported manganese ore prices.
IEX Power
According to Indian Energy Exchange (IEX), the weekly average spot prices (26 February- 4 March) in the day ahead market registered a hike of 7% w-o-w to INR 8.375/unit as against INR INR 7.792/unit last week.
Higher clearing prices were registered at the exchange amid a continual uptick in power demand as bids for power purchases exceeded 1.8 times that of sold bids this week.
Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, inched down by 1% w-o-w. Prices of 60-14 grade fell by 2% w-o-w to $934/t, while 65-16 grade prices inched down by 1% to $1,044/t amid lack of buying from overseas. All prices are FOB India.
Silico manganese prices fell by 2% w-o-w to INR 74,400/t ex-Durgapur, INR 74,460/t ex-Vizag, and INR 76,740/t ex-Raipur. Both domestic and international demand softened resulting in decline in prices.
Ferro manganese
India’s exported ferro manganese prices inched down by 2% w-o-w at $953/t FOB India for HC70%. However, prices of HC75% grade fell by 1% to $1,036/t FOB India.
Meanwhile, domestic ferro manganese prices inched down by 2-3% w-o-w to INR 78,040/t ex-Durgapur. Meanwhile, ex-Raipur was assessed at INR 78,520/t. Prices of ferro manganese dropped due to subdued demand for special steels.
Ferro chrome
According to SteelMint’s assessment on 2 March, Indian ferro chrome prices dropped by around INR 3,750/t w-o-w to INR 121,400/t exw Jajpur. The drop in prices was mainly because of weak demand at higher prices. This forced producers to lower their offers amid selling pressure. In addition, stainless steel prices were under pressure, which weighed on prices. But chrome ore prices remained steady, sources informed.
Ferro silicon
According to our assessment on 3 March, ferro silicon prices were hovering at around INR 120,000-122,000/t exw from both Bhutan and Guwahati. Ferro silicon prices in Bhutan dropped in the beginning of March. According to sources, some major producers in Bhutan were offering higher prices at around 126,000/t exw because they had sufficient orders in hand and were not in a rush to sell material at lower prices.
Trade
SteelMint recorded bulk deals of around 6,200 t of ferro alloys this week of which manganese deals comprised 4,200 t, ferro chrome 1,500 t, and ferro silicon 500 t.
Tenders and auctions
- Vedanta-FACOR held a ferro chrome auction on 28 February. The bigger lot of 10-150mm fetched an H1 price of INR 123,100/t ex-Jajpur, close to the base price of INR 122,000/t. Meanwhile, the smaller lot of 10-150 mm was booked at INR 123,050/t, sources informed.
- State-owned SAIL concluded a reverse auction for 11,249 t of silico manganese (60-15, size:10-50mm and 60-15, size:10-50mm, P: 0.1% max) for the Bhilai Steel Plant (BSP) in Chhattisgarh on 20 February, 2023. The material was booked at around INR 95,787/t FOR (inclusive of all taxes), sources informed.
- MOIL has announced prices of manganese ore of all grades for March. It has increased ferro grades prices with manganese content of Mn-44% and above by 8% m-o-m due to limited supply. However, prices of all other grades – below Mn 44%, SMGR (30%, 25%), fines and chemical grades – have been kept unchanged m-o-m. The miner has offered a balance quantity of 42,776 t of manganese ore for March.
- India’s largest steel producer, Steel Authority of India Ltd (SAIL), has scheduled an auction for 3,000 t of HC ferro chrome (60%) for its Salem Steel Plant (SSP), Tamil Nadu facility. The last date of bid submission is 10 March. The bid offer is valid for 60 days from the end date.
- ArcelorMittal Nippon Steel India (AM/NS India) has floated a purchase tender for 6,000 t of high-carbon (HC) ferro manganese (Mn: 70%, Size: 10-50mm) for its Gujarat-based plant. The last date for submission of bids is 7 March, 2023. The delivery is scheduled for Mar-May and the payment terms include credit of 30 days.
- ArcelorMittal Nippon Steel India (AM/NS India) has floated a request for quotation for 70 t of ferro vanadium (10-50 mm, V: 75-80%) from its Gujarat-based plant. The last date of bid submission is 6 March, 2023. The delivery is scheduled for April-May 2023 and the payment terms are 30 days credit/100% CAD (import).
- State-owned SAIL has issued a purchase tender for 30 t of HC ferro molybdenum (Mo60%, 10-50 mm) for its Alloy Steel Plant (ASP), Durgapur. The last date for bid submission is 18 March, 2023. A reverse auction will be conducted amongst all the technically-qualified bidders except the highest-quoting bidder.
- China’s stainless steel major, Taiyuan Iron and Steel Corporation (TISCO), has hiked ferro chrome (HC 50%) purchase prices for March by RMB 250/t ($36/t) m-o-m to RMB 9,195/t ($1,332/t) DAP, including taxes.
- India’s Ministry of Defence conducted a reverse auction for 19.4 t of ferro molybdenum (Mo-60-65% min, size: 25-50 mm) for its Metal and Steel Factory, West Bengal, through reverse auction on 1 March. The material was booked at INR 4,325,070/t FoR (inclusive of all charges).
- State-owned MSTC has issued a notice to conduct an auction for 5,142 t of manganese ore of different grades (Mn; 15-26%) on Dept of Mines and Geology Tumkuru, Karnataka. The material is in 17 lots and the auction will be held on 14 March.
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