Weekly round-up: Ferro alloys market functions weak amid lower global, domestic demand

Indian ferro alloys market remained dull this week due to the weak domestic and global demand. The prices for silico manganese, ferro manganese, ferro chrome, and ferro silicon stayed down. Meanwhile, the ferro chrome prices inched up.

Imported manganese ore prices remain range-bound w-o-w

Imported manganese ore prices into India for Mn: 37-46% material remained rangebound w-o-w. Prices of Mn37% were assessed at $3.70/dmtu, up $0.05/dmtu w-o-w, Mn44% at $4.45/dmtu, down $0.05/dmtu and Mn46% at $4.75/dmtu, down $0.05/dmtu w-o-w. All prices are CIF India.

Moreover, MOIL has opened manganese ore tenders for Q1 FY24.The miner boosted rates for all grades below 44% Mn content by 1.5% m-o-m, while bids over 44% Mn content were reduced by roughly 2% m-o-m.

IEX spot prices rise this week amid increase in demand

According to Indian Energy Exchange (IEX), the weekly average spot price (1 October-7 October) in the day-ahead-market rose by 5% w-o-w to INR 5.50/unit as against INR 5.26/unit last week. In the prevailing strong market conditions, prices continued to rise. The disparity between buy-to-sell offers widened to 1.7 at the conclusion of the week, driving purchasers to bid aggressively.

Indian silico manganese prices down w-o-w amid weak demand

As of 6 October, 2023, Indian silico manganese (60-14) traded at around INR 65,500-66,700/t exw Durgapur, Raipur, and Vizag diminished by INR 1600/t. Due to the subdued demand from the mills the prices went down and because of this, traders also lowered their offers. Fall in steel prices could also be one of the reasons for declined prices of silico manganese. It is projected that the prices of silico manganese would be stable in the near future. Moreover, the billet index fluctuated this week, owing mostly to sluggish demand in the semi-finished steel category. This slowness can be attributable to decreased silicon manganese production.

Ferro manganese prices decrease amid low demand

Prices for Indian ferro manganese (HC70%) dropped by INR 1,000/t this week amid muted demand for special steel and reducing production volume. According to SteelMint, ferro manganese offers in Raipur and Durgapur on 6 October were INR 67,000-68,600/t exw.

Declining trade cause Indian ferro chrome prices to drop

On 6 October, Indian ferro chrome (HC 60%, Si:4%) prices diminished by INR 3,200/t, as the buyers already had sufficient purchase resulted in low demand. The declined stainless steel prices w-o-w could also be the reason for lowered ferro chrome prices. On 6 October, SteelMint assessed the price of Indian ferro chrome (HC60%, Si:4%) at INR 119,800/t exw-Jajpur. It is anticipated that the price might get corrected after the Chinese market resumes.

Ferro silicon prices rise after Bhutanese price release

Prices of Indian ferro silicon (FeSi:70%) rose by INR 900/ to maintain the balance between the latest Bhutanese price announcements. The prices would be stable in the near future as the there is an ongoing mid-autumn holidays in China, making the market inactive for now. According to SteelMint, the price of ferro silicon in India on 6 October was INR 104,500/tonne (t) exw-Guwahati.

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