Weekly round-up: Ferro alloys market reflects mixed sentiments

• Ferro silicon prices decline as Bhutanese offers stay stable post-BIS renewals
  
  
• Indian ferro chrome prices hit 3-month high after recent auctions
  
  
• Domestic silico manganese prices increase on rising export inquiries
  
  

Indian ferro silicon prices fall post-BIS renewals

Indian ferro silicon (FeSi:70%) prices have fallen by INR 850/t ($10/t) ex-Guwahati and Bhutan. As some companies' BIS licenses were renewed, they received the same bids as before, causing ferro silicon prices to decline. Supply concerns were also rectified, which may have contributed to the price drop. As of 25 January, SteelMint reported ferro silicon prices in India at INR 110,000/t ($1,323/t), down INR 200/t ($2/t) exw-Guwahati and INR 110,000/t ($1,323/t) exw-Bhutan, suggesting a price fall of INR 1,500/t ($18/t).

Ferro chrome prices hit 3-month high post-auctions

On 25 January, Indian ferro chrome prices touched a 3-month high, (HC 60%, Si:4%) increased by INR 6,000/t ($72/t), reaching INR 119,000/t ($1,432/t) exw-Jajpur. Prices rose due to market shortages and higher production costs following the OMC's chrome ore auction. Furthermore, at Vedanta-FACOR's ferro chrome auction, the larger lot of 10-150 mm (Cr: 57.5% min) earned an H1 price of INR 117,400/t exw, a 2% increase over the base price of INR 115,000. However, prices for stainless steel (304 grade) ex-Mumbai were INR 173,000/t ($2,081/t) and remained consistent w-o-w.

Silico manganese prices move up amid rise in export inquiries

Indian silico manganese prices saw an uptick, influenced by a rise in export inquiries and a few large purchases of the 60-14 grade at higher prices. Fearing a scarcity of spot inventory, domestic mills have also indicated a desire to stock up in response to increased prices in key steel-producing nations. Export prices also hiked for silico manganese (60-14) stood at $820/t FOB Vizag/Haldia, while silico manganese (65-16) was priced at $923/t. Silico manganese (60-14) was traded at approximately INR 65,000-65,800/t ($782-$792/t) exw Durgapur, Raipur, and Vizag up by INR 950/t ($11/t) on 25 January, 2024.

The domestic steel billet index BigMint was assessed at INR 39,850/t ($479/t) exw-Raipur on 27 January, 2024, at 13:00 hrs which is stable compared to last week.

Ferro manganese prices climb amid supply constraints

Ferro manganese (HC70%) prices have risen due to constrained supply and increased inquiries from the Southeast region, and a few bulk bookings have been made at the increased price. According to BigMint, ferro manganese offers in Durgapur and Raipur on 25 January ranged from INR 65,500 to INR 65,700/t ($788-$790/t), with an additional INR 700/t ($8/t).

Imported manganese ore prices consistent w-o-w

Prices of imported manganese ore Mn: 37-46% remained sturdy on limited demand in the domestic market. Prices of Mn37% were assessed at $3.9/dmtu up by $0.05/dmtu, Mn44% at $4.35/dmtu, and Mn46% at $4.65/dmtu. All prices are CIF India weekly. Imported shipments for manganese ore (Mn37%, Mn44%, and Mn46%) too remained stable this week.

IEX spot prices rise

Spot electricity prices in the day-ahead market at the Indian Energy Exchange (IEX) increased by 9% w-o-w, reaching INR 6.38/unit compared to the previous week's INR 5.86/unit (21 January-27 January).

Ferro molybdenum prices fall marginally on panic sales

Indian ferro molybdenum prices witnessed a downtrend of INR 34,000/t ($409/t) this week, as limited demand made the players to engage in panic sales, meanwhile the London Metal Exchange (LME) also witnessed a slight decrease in the prices. As of 24 January, the prices for Indian ferro molybdenum were at INR 2,314,000/t ($27,838/t) exw-Nagpur on a 60% pro rata basis.

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