Weekly round-up: Ferro alloys market shows uptrend amid moderate demand

The ferro alloys market showed an uptrend this week, supported by some moderate demand.

Manganese ore
Global manganese ore imports fell by 3% w-o-w to $5.35/dmtu for grade 37% while grade 44% prices inched down by 3% to $7.5/dmtu and grade 46% by 3% to $7.8/dmtu.
Overall, the manganese ore market was sluggish due to weak downstream alloys sentiments.

IEX power prices
According to the Indian Energy Exchange (IEX), weekly average spot power prices (19 June-25 June) decreased by 36% w-o-w to INR 4.90/unit as against INR 7.705/unit last week. The sharp correction was led by waning power demand with the onset of monsoon. Notably, the average power shortage was recorded at 8.07 milion units/day (MU/day) this week as against 37.04 MU in the preceding week.

Silico manganese
Exported silico manganese (60-14 grade) prices inched up by 4% w-o-w to $1,090/t and by 1% to $1,210/t for 65-16 grade at Indian ports amid moderate demand and inquiries from importing countries. Meanwhile, domestic silico manganese prices edged up around 4% to INR 84,000 /t ex-Durgapur, INR 84,800/t ex-Vizag and INR 84,500/t ex-Raipur (up 4%).

Ferro manganese
Exported ferro manganese prices were stable with marginal fluctuations. Weekly average prices for HC 70% were at $1,110/t, and up 1% to $1,215/t for HC 75% grade. However, domestic ferro manganese prices were down by 1% to INR 86,400/t ex-Durgapur and by 2% to INR 86,600/t ex-Raipur.

Ferro chrome
According to SteelMint's assessment on 23 June, ferro chrome (HC60%) smelters were offering at around INR 108,000/t exw-Jajpur. Domestic and export demand were weak in anticipation of further fall in prices in the near term. Prices thus remained rangebound with marginal fluctuation w-o-w.

Stainless steel prices fell in line with the decline in nickel prices. This resulted in steady ferro chrome prices amid moderate demand due to buyers' reluctance to order large quantities.

Ferro silicon
Indian ferro silicon prices surged owing to supply disruptions amid heavy rainfall and landslides in the north-east. There was supply shortage as producers held their offers and plants shut down for maintenance which resulted in a sharp hike of INR 16,000/t w-o-w in ferro silicon prices. According to SteelMint's assessment on 24 June 2022, ferro silicon prices were hovering at around INR 150,000/t exw- Guwahati and Bhutan.

Trade
SteelMint recorded around 12,500 t of bulk ferro alloys deals this week out of which manganese alloys deals accounted for 9,500 t, ferro chrome 1,500 t, and ferro silicon 1,800 t.

Tenders and auctions

• Rashtriya Ispat Nigam Ltd (RINL) invited bids for procurement of 31,000 t (40-100 mm) of silico manganese (60-15 grade). The last date for bid submission was 23 June 2022.
  
  
• SAIL's Bokaro Steel Plant unit concluded a reverse auction for 6,000 t of ferro manganese (HC70%, Size:40-100mm) at INR 81,000/t on 17 June. Meanwhile, reverse auction for 5,850 t of ferro manganese (HC70%, Size:25-50mm) concluded on 20 June at around INR 80,700/t. The L1 prices were inclusive of freight and GeM charges.
  
  
• Vedanta-FACOR's ferro chrome (10-150mm) auction concluded at INR 108,400/t exw on 23 June.