Weekly round-up: Ferro alloys prices reflect mixed trends as market waits for clear directions

• Silico manganese prices rise after 3 weeks of decline
  
  
• MOIL hikes manganese ore offers for June
  
  
• Ferro chrome prices hit a 3-month low
  
  
• Ferro molybdenum prices remain largely stable
  
  

Silico manganese prices increase after 3 weeks

Silico manganese prices in India rose by INR 2,750/t ($33/t) to INR 85,000-86,600/t ($1,019-1,038/t) exw across markets. After Comilog's new offer for Gabonese manganese ore for July shipment, offers in the domestic market have also drifted up.

Silico manganese prices in the coming weeks may vacillate as MOIL, a state-owned mining company, has raised offers for manganese ore by 35% for grades above Mn44% and 30% for grades below Mn44% for June 2024.

However, the domestic steel billet index stood at INR 44,200/t ($530/t) exw-Raipur, down INR 200/t ($2/t) w-o-w on 1 June at 11:43 hrs.

Ferro manganese prices rise sharply

Ferro manganese (HC70%) prices increased by INR 5,200/t ($62/t) in Raipur, reaching INR 93,400/t ($1,119/t) exw. Meanwhile, in Durgapur, prices rose by INR 4,200/t ($50/t) to INR 93,000/t ($1,115/t). Prices took a reverse gear and increased due to elevated ore prices and improved demand in the domestic market.

Imported manganese ore prices move up

Prices of imported manganese ore (Mn37-46%) increased this week. Prices of Mn37% (South Africa origin) were unchanged at $6.45/dmtu; Mn44% from Gabon stood at $8.45/dmtu, up by $1.3/dmtu w-o-w; while Mn46% of Australian origin stood at $9/dmtu, up by $1.4/dmtu w-o-w. All prices are CIF India.

However, cargo arrivals for manganese ore declined by 7% for Mn37%, Mn44%, and Mn46%.

Ferro chrome prices hit five-month low

Prices of Indian high-carbon ferro chrome (HC60%, Si:4%) edged down by INR 500/t ($6/t) w-o-w on 31 May, settling at INR 105,800/t ($1,268/t) exw-Jajpur. Prices reached a five-month low, as per data maintained with BigMint, since the market remained muted.

Additionally, prices of Indian high-carbon ferro chrome (HC60%, low silicon) declined by INR 700/t ($8/t) on 30 May, settling at INR 113,600/t ($1,361/t) exw-Jajpur.

However, prices of 304 grade stainless steel held steady w-o-w at INR 182,000/t ($2,182/t) exw-Mumbai. Stability was primarily due to unchanged nickel prices on the LME which dipped a slight $160/t w-o-w.

Ferro silicon prices remain firm

Indian ferro silicon (FeSi:70%) prices fell slightly by INR 150/t ($2/t) w-o-w settling at INR 99,100/t ($1,188/t) exw-Guwahati on 31 May. Meanwhile, Bhutan's prices also inched down by INR 100/t ($1/t), reaching INR 98,200/t ($1,177/t) exw. The market showed no significant changes, and regular trades were seen at prevailing rates; hence, prices remained stable.

Ferro molybdenum prices largely stable

Domestic ferro molybdenum prices remained largely stable w-o-w with a slight decline of INR 12,000/t ($144/t). As on 31 May, prices stood at INR 2,759,000/t ($33,067/t) exw-Nagpur on a 60% pro rata basis.

Prices on the LME showed a slight $0.80/pound w-o-w increase to $22.69/pound.

Ferro vanadium prices stable

Indian ferro vanadium prices held steady amidst weak demand, with FeV 50% priced at 1,150,000-1,235,000/t ($13,800-$14,820/t) ex-works. The market was stable despite low demand which may be attributed to rising raw material costs. The market expects clarity on prices to emerge after the elections.

IEX spot prices decline

Spot electricity prices on the Indian Energy Exchange (IEX) saw a notable decrease of 8% w-o-w falling to INR 5.16/ unit during 26 May- 1 June compared to the previous week's INR 5.63/unit. This decline was primarily driven by an uptick in power supply availability, prompting buyers to lower their bids for power procurement. Throughout the week, bids consistently remained below the INR 6/unit mark.

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