Weekly round-up: Ferro alloys prices exhibit mixed trends amid slowdown in steel market

• FeSi prices inch up on positive market response
  
  
• SiMn offers edge down amid cautious market
  
  

Ferro alloys prices demonstrated mixed trends this week, impacted by a challenging steel market, which witnessed a slowdown.

Ferro silicon prices jump as market responds to higher offers

Indian ferro silicon (FeSi: 70%) prices increased by around INR 1,900/t ($23/t) w-o-w to INR 108,600/t ($1,292/t) exw-Guwahati on 18 October. Meanwhile, prices in Bhutan remained unchanged at INR 108,000/t ($1,285/t) exw. Indian prices rose as the market slowly adapted to higher offers made by sellers, reflecting changing dynamics in supply and demand.

Furthermore, certain ferro silicon plants in Byrnihat resumed operations after a 40-day suspension due to pollution control violations. Their return to full production will help clarify future price trends in India.

Ferro chrome prices remain steady amid wait for OMC auction outcome

Prices of Indian high-carbon ferro chrome (HC60%, Si:4%) remained inched down by INR 300/t ($4/t) w-o-w to INR 110,400/t ($1,313/t) exw-Jajpur on 18 October. Prices remained largely stable, as market sentiment was consistent throughout the week, with routine trading continuing without significant fluctuations or changes in demand.

At the chrome ore auction from the Odisha Mining Corporation (OMC) yesterday, 23,500 t were sold out of the 33,500 t offered. Bids increased by 1-11% (INR 192-2,883) from the previous month and surged 9-64% (INR 1,800-15,200) above the base price. Market players waited for the auction to conclude, as they hoped that the results would provide direction for future pricing trends.

Furthermore, stainless steel prices for 304-grade hot-rolled coils (HRCs) fell by INR 4,000/t ($48/t) w-o-w to INR 182,000/t ($25,539/t) exw-Mumbai.

Imported manganese ore prices remain range bound**

Prices of imported manganese ore (Mn 37-46%) remained largely stble w-o-w. Mn44% from Gabon stood at $4.1/dry metric tonne unit (dmtu), up by $0.05/dmtu, Mn46% from Australia was at $4.4/dmtu CIF India, up by $0.05/dmtu, and Mn37% from South Africa remained unchanged at $3.85/dmtu.

Cargo arrivals for manganese ore diminished significantly for Mn37%, Mn44%, and Mn46%.

Silico manganese prices stay range-bound on limited trades

Indian silico manganese prices remained stable with a slight dip, as domestic steel prices slowed. Notably, tags for the 60-14 grade drifted down by INR 1,050/t ($12t) w-o-w to INR 68,200-68,800/t ($811-818/t) exw in Raipur, Durgapur, and Visakhapatnam. Minimal trades occurred, and manufacturers reduced production to manage rising input costs and excess supply.

Prices of silico manganese (65-16) stood at $932/t FOB Vizag/Haldia, India, inching down $3/t w-o-w.

Meanwhile, the domestic steel billet index remained unchanged w-o-w at INR 41,000/t ($488/t) exw-Raipur on 18 October 2024.

Ferro manganese prices remain largely stable on market stagnancy

Indian ferro manganese (HC70%) prices were largely stable, inching down by around INR 200/t ($2/t) w-o-w to INR 71,000/t ($845/t) exw in Raipur and by INR 400/t ($5/t) w-o-w to INR 71,100/t ($846/t) in Durgapur. Buyers did not respond to higher quotes amid the slowdown in the steel sector, and the market slackened as a result.

Additionally, prices of ferro manganese (HC 75%) stood at $940/t FOB Vizag/Haldia, down $5/t w-o-w.

Ferro molybdenum prices climb up on positive global signals

Domestic ferro molybdenum prices rose by INR 40,000/t ($476/t) w-o-w. As of 18 October, prices were at INR 2,642,000/t ($31,427/t) exw-Nagpur on a 60% pro-rata basis. The price hike followed climbing global rates, especially in China, where demand drove up production costs.

Additionally, on the London Metal Exchange (LME), prices were largely stable, barring a marginal fall of $0.02/lb w-o-w to $21.92/lb.

Indian ferro vanadium prices edge up on market positivity

Indian ferro vanadium prices inched up by INR 24,000/t ($285/t) w-o-w to INR 1,164,000/t ($13,846/t) exw-Raipur (for FeV 50%). Domestic ferro vanadium demand increased slightly due to rising trader inquiries, though high prices have limited transactions.

IEX spot prices decline

Spot electricity prices on the Indian Energy Exchange (IEX) decreased by 26% to INR 3.44/unit during the week (13 October-19 October) from the previous price of INR 4.63/unit.

Trade

Auction Result

** Correction in imported manganese ore price indicators.