Weekly round-up: Ferro alloys market remains weak amid poor demand
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Indian ferro alloys prices remained muted w-o-w due to dull demand in the global and domestic markets. Prices for silico manganese, ferro manganese and ferro chrome remained dull, while ferro silicon prices stayed stable.
Imported manganese ore prices stable
Imported manganese ore prices into India for Mn: 37-46% material remained stable. Prices of Mn37% were assessed at $3.75/dmtu, Mn44% at $4.45/dmtu, and Mn46% at $4.75/dmtu CIF India. Major manganese ore miners like UMK maintained their quotes which may have been the reason for unchanged manganese ore prices this week.
IEX spot prices rise
According to Indian Energy Exchange (IEX), the weekly average spot price (7 October-14 October) in the day-ahead-market rose by 69% w-o-w to INR 9.32/unit as against INR 5.5/unit last week. In the existing strong market conditions, prices continued to rise. The disparity between buy-to-sell offers widened, driving purchasers to bid aggressively.
Silico manganese prices fall
As of 13 October, domestic silico manganese (60-14) was traded at around INR 65,000-66,300/t exw Durgapur, Raipur and Vizag, a decrease of INR 900/t w-o-w. Due to the decline in bulk inquiries and poor export demand, prices silico manganese dropped this week. Another reason could be the decline in steel prices and domestic billet prices drop by INR 300-1,500/t due to lower finished product enquiries in major markets. It is anticipated that silico manganese prices might derive support from the reduction in inventories with producers.
Ferro manganese prices decline
Prices for Indian ferro manganese (HC70%) dropped INR 900/t this week amid weak demand for special steel. According to SteelMint, ferro manganese offers in Raipur and Durgapur on 13 October stood at INR 66,500-67,000/t exw.
Weak stainless steel demand weighs on ferro chrome
On 13 October, Indian ferro chrome (HC 60%, Si:4%) prices dropped INR 4,000/t. Weakening stainless steel demand and declining prices of ferro chrome in the Chinese market drove Indian ferro chrome prices lower this week. Prices for 304 and 316 grade stainless steels fell by INR 3,000/t and 13,000/t w-o-w to INR 202,000/t and 340,000/t, respectively, on 11 October. On 13 October, SteelMint assessed the price of ferro chrome (HC60%, Si:4%) at INR 116,000/t exw-Jajpur. The forthcoming chrome ore auction by OMC will decide prices in the coming weeks.
Ferro silicon prices stable
Prices of domestic ferro silicon (FeSi:70%) inched down by INR 400/t this week. Firm demand and high trade volumes kept prices stable. In the coming weeks, power supply shortage is apprehended in Bhutan contributing to increased prices of ferro silicon. Ferro silicon was assessed at INR 104,100/t exw-Guwahati on 13 October.
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