Weekly round-up: Ferro alloy prices stable despite declining demand

Domestic ferro alloy prices remained constant in the face of weak demand in both domestic and international markets, SteelMint noted.

Manganese ore

India's manganese ore import prices for Mn: 44-46% were stable w-o-w. Prices of Mn37% grade were at $4/dmtu, unchanged w-o-w; Mn44% stood at $4.9/dmtu, while Mn46% grade was offered at $5.25/dmtu. All prices were on CNF India. Recently, the manganese ore market has shown a tendency to consolidate, and has been steady.

IEX power

Spot electricity prices at India Energy Exchange continued to rise this week in tandem with the increasing power demand. Average prices on day-ahead-market rose 7% w-o-w to INR 5.57/unit during 14-20 May, 2023. Moreover, supply-side constraints reduced power availability for transactions as bids for power purchases exceeded sell bids by around 1.1 times this week.

Silico manganese

Prices of silico manganese, brought in from Haldia and Vizag ports, were constant w-o-w. Prices of the 60-14 grade were stable w-o-w at $930/t. Meanwhile, 65-16 grade prices were nearly stable at $995/t w-o-w. According to SteelMint, prices of Indian silico manganese remained stable w-o-w on May 19, 2023. Prices were offered at INR 73,600/t ex-Durgapur, INR 74,600/t ex-Vizag, steady w-o-w, and INR 74,200/t ex-Raipur, stable w-o-w. As steel demand has gradually reduced, alleviating some of the constraints on industrial inventory, the spot market has remained constant, with quotes remaining consistent.

Ferro manganese

India's exported ferro manganese prices remained close to steady w-o-w at $930/t FOB India for HC70%. However, prices for the HC75% grade fell 1% w-o-w to $994/t FOB India.

As of May 19, 2023, prices of ferro manganese in India were almost constant w-o-w at INR 75,500- 76,000/t ex-Durgapur and ex-Raipur. Prices for ferro manganese remained constant as demand for special steel declined.

Ferro chrome

According to SteelMint's assessment on 18 May, Indian smelters concluded transactions of around 2,000 t for HC60% grade at around INR 108,000-110,000/t exw. Producers have begun to quote offers which are slightly higher than last week's average offers. Although, deals have not yet been finalised. Indian ferro chrome prices increased by INR 1,700/t ($21) w-o-w due to improved inquiries in domestic and overseas markets and high production costs.

Furthermore, bids for high quality chrome ore at OMC's auction reached up to a 12% premium above the base price. Out of the 85,100 t placed up for sale, 55,700 t received bids, showing that purchasers were engaged amid hopes that ferro chrome prices would rise shortly.

Ferro silicon

According to SteelMint's assessment on 19 May, Guwahati-based producers were offering at around INR 122,000-123,500/t exw, while offers in Bhutan were hovering at INR 123,000/t exw. Due to low demand, Indian ferro silicon (70%) prices declined by INR 700/t this week. Prices continued to fall despite higher production costs in the north eastern belt.

The ferro silicon market fluctuated at a low level. The spot price declined marginally and the downtrend in steel prices exerted pressure on it. The overall market sentiment was negative. Steel mills have curtailed output and demand has taken a beating. This has significantly impacted ferro silicon manufacturing prices and resulted in a substantial supply-demand imbalance. Producers are having trouble negotiating better pricing and are selling material at present levels in order to keep the market afloat.

Trade

SteelMint recorded bulk deals of around 9,300 t of ferro alloys this week. Out of this, manganese deals comprised 4,600 t, ferro chrome 500 t, and ferro silicon around 4,200 t.

Tender and auctions