Weekly round-up: Ferro alloys market subdued amid muted demand

The ferro alloys market showed a downtrend this week amid bearish steel sentiments and muted demand.

Manganese ore
Global manganese ore imports slightly fluctuated w-o-w amid lower demand. The prices for 37% grade were at around $5.25/dmtu, while grade 44% hovered at around $7.15/dmtu and grade 46% was at around $7.55/dmtu. Overall, the manganese ore market was muted due to pressure from the alloys market.

IEX power prices
According to Indian Energy Exchange (IEX) weekly average spot prices (3 July- 9 July) in day ahead market were up by 5% w-o-w to INR 5.63/unit as against INR 5.47/unit in last week. The hike in prices was mainly because of power shortages faced by the states across north-east region due to maintenance shutdown of hydro-power stations.
In particular, Meghalaya recorded average power shortage of 39 mega-watt during peak demand period this week. To mitigate the supply gap, the state power distribution company already announced power cuts up to 4 hours.

Silico manganese
Exported silico manganese (60-14 grade) prices were down by $20/t w-o-w to $1,060/t and 65-16 grade were down by $25/ $1,180/t at Indian ports due to lack of demand.
Meanwhile, domestic silico manganese prices dropped by INR 2,620/t to INR 81,300 /t ex-Durgapur, down by INR 1,660/t to INR 82,480/t ex-Vizag and by INR 1,330/t to INR 83,360/t ex-Raipur on a weekly basis.

Ferro manganese
Exported ferro manganese prices were stable amid continued drop in demand in domestic and export markets. Weekly average prices for HC 70% were stable at $1,110/t, while there was a nominal drop of $4/t for HC 75% grade to $1,206/t.
Meanwhile, domestic ferro manganese prices were down by INR 600/t to INR 86,240/t ex-Durgapur and to INR 87,460/t ex-Raipur, up by INR 100/t on a weekly basis.

Ferro chrome
Indian ferro chrome prices dropped by around INR 1,000/tonne (t) w-o-w to INR 105,750/t amid selling pressure from weak domestic and export markets. Downtrending stainless steel prices also led to lower ferro chrome prices. In addition, material oversupply due to supply-demand mismatch also forced producers to sell at lower prices.

Ferro silicon
Indian ferro silicon (70%) prices rose by INR 3,750/tonne (t) w-o-w to INR 150,000/t both exw-Guwahati and Bhutan. The prices rose this week as buyers sought to secure deliveries following reduced production in Bhutan and expected logistical delays during the rainy season. Meanwhile, supply tightness owing to lesser imports amid rupee depreciation also kept the offers high.

Trade
SteelMint recorded around 6,200 t of bulk ferro alloys deals this week, out of which manganese alloys deals accounted for 2,200 t, ferro chrome 1,000 t, and ferro silicon 3,000 t.

Tenders and auctions

• IDCOL conducted an auction for 1,300 t of ferro chrome (lump, chips and powder) on 5 July from its Jajpur plant. The auction failed to receive bids at base price of INR 105,000/t for 800 t lumps (10-100mm, Si-4%) and INR 107,000/t for 200 t lumps (10-100 mm, Si-2%).
  
  
• IISCO Steel Plant (ISP) concluded a reverse auction for 2,700 t of ferro manganese (HC70%, size:25-50mm) at INR 85,000/t inclusive of freight and GeM charges on 7 July.
  
  
• Vedanta's Ferro Alloys Corporation Limited (FACOR) concluded an auction for ferro chrome fines (0-10mm) at INR 90,900/t on 8 July.
  
  
• Steel Authority of India concluded its procurement tender for 18,395 t of ferro silicon (70%) for its seven different plants through reverse auction on 6 July at INR 158,900/t on a weighted average landed cost net of Input Tax Credit basis.
  
  
• Odisha Mining Corporation (OMC) scheduled an auction for 88,667 t of chrome ore (32-54% Cr2O3) from its South Kaliapani (68,000t), Sukrangi (16,400t) and Bangur mines (4,267t) in Odisha on 18 July.