Weekly round-up: Ferro alloys prices face headwinds from mixed sentiment in domestic market

This week, demand for ferro alloys on the domestic market diminished which resulted in price fluctuation. The demand for special steels was moderate. Although there have been more queries from overseas, silico manganese prices have risen slightly. The overall ferro alloys market saw a marginal decline in demand as a result of lower bulk orders from overseas for manganese alloys.

Manganese ore
Global manganese ore import prices across grades were stable; SteelMint assessed Mn37% rising 1% w-o-w at $4.25/dmtu, $4.6/dmtu for Mn44%, and $5.1/dmtu for Mn46%. Globally, manganese ore prices were stable despite lackluster demand. It is possible that manganese ore prices will change in the near future as miners are being pushed into selling their products.

IEX power prices
According to IEX (Indian Energy Exchange) weekly average spot prices (4-10 December) in day ahead market up by 4% w-o-w to INR 4.808/unit as against INR 4.639/unit due to increase in demand amid winter season.

Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, were nearly stable on weekly basis. The 60-14 grade was stable w-o-w to $912/t, while the 65-16 grade offered at $1010/t amid improved inquiries from overseas last week.
On the other hand, silico manganese prices were up 1% w-o-w to INR 72,820/t ex-Durgapur, INR 72,900/t ex-Vizag, and INR 72,900/t ex-Raipur. Since last week, demand has been mild on both the domestic and global levels, which has caused silico manganese prices to slightly increase.

Ferro manganese
Exported ferro manganese prices were stable on weekly basis to $916/t for HC70%. Prices of HC75% were at $1,013/t. However, domestic ferro manganese prices were inched down by 1% w-o-w to INR 74,080/t ex-Durgapur, while ex-Raipur was assessed at INR 74,500/t. In this week's ferro manganese market, prices remained low due to weak special steel demand.

Ferro chrome
According to SteelMint's assessment on 8 December, ferro chrome producers were offering around INR 94,500- 95,000/t exw-Jajpur this week, down by around INR 1,800/t w-o-w due to weak demand from both domestic and export markets, particularly China, as Covid cases spread. Less participation in Vedanta's ferro chrome auction on 6 December, with an H1 price of INR 94,600/t, also resulted in lower ferro chrome prices in the domestic market.

Ferro silicon
Indian ferro silicon prices fell w-o-w due to refusal to accept higher prices by Buyers. According to SteelMint's assessment on 9 December, Guwahati-based producers were offering at around INR 120,000/t exw, while offers from Bhutan remained stable at INR 125,000/t exw. Rangebound input cost (quartz, LAMC, and electricity tariff) also discouraged producers from increasing their offers.

Trade
SteelMint recorded bulk trades of around 10,000 t of ferro alloys this week, out of which manganese deals comprised around 6,000 t, and ferro chrome 4,000 t.

Tender and Auction

• ArcelorMittal Nippon Steel India (AM/NS India) has floated a supply tender for 2,000 t of low-carbon silico manganese (Mn: min 55%, C: min0.2%, Size: 10-50 mm) from its Gujarat-based plant. The bid submission date is 9 Dec'22 and the delivery is scheduled for Dec'22-Jan'23.
  
  
• Tshipi, world's largest manganese ore miner, has increased its South African manganese ore lumps (Mn 36.5%) offers by $0.12/dmtu to $4.1/dmtu on a CIF China basis for January shipment.
  
  
• Vedanta's subsidiary Ferro Alloys Corporation Limited (FACOR) has cancelled the previous auction on 1 Dec'22 for various grades of ferro chrome and rescheduled the same on 6 December with some additional quantity. In the previous auction, the larger lot of 10-150 mm was booked at INR 94,600/t exw, an increase of INR 1,000/t over the base price.
  
  
• Vedanta-FACOR held a ferro chrome auction on 6 Dec'22. The larger lot of 10-150 mm was concluded at H1 price of INR 94,600/t exw, close to the floor price.
  
  
• Rashtriya Ispat Nigam Ltd (RINL), the corporate entity of Vizag Steel, has invited bids for procurement of 1,900 t (10-100 mm) of HC ferro chrome (60%) for six months from purchase order date. The last date of bid submission is 15 December.
  
  
• State-owned MSTC has issued a notice to conduct an auction for 33,264 t of manganese ore of different grades (Mn; 26-34%) on behalf of Sandur mines (SMIORE), Karnataka. The material is offered in 63 lots and the auction will be held on 15 December, sources informed.