Weekly round-up: Ferro alloys prices remain range-bound amid mixed market trends

Ferro alloys prices in the domestic market remained range-bound this week due to limited demand. Mixed sentiments in both domestic and foreign markets dampened demand.

Limited demand for manganese alloys pushed manganese ore prices lower.

Prices for ferro chrome and ferro silicon rose as a result of improvement in demand.

Manganese ore

Global manganese ore import prices for Mn: 44-46% fell by 2% w-o-w. Prices of Mn37% grade were at $4.1/dmtu, down 2%, while Mn44% stood at $5/dmtu. Meanwhile, Mn46% grade was offered at $5.35/dmtu. Manganese ore prices fell as a result of sluggish market activity and low demand for manganese alloys.

IEX power

According to Indian Energy Exchange (IEX), the weekly average spot prices (23-29 April) in day-ahead-market registered a sharp drop of 40% w-o-w to INR 4.16/unit as against INR INR 6.952/unit last week.

The price correction was the result of easing power supplies amid favourable weather conditions where bids for power sell exceeded purchase bids by around 1.2 times this week.

Silico manganese

Prices of silico manganese, transported from Haldia and Vizag ports, dropped by 1% w-o-w. 60-14 grade prices were nearly stable at $925/t, while 65-16 material was offered at $1,020/t, down 1% w-o-w. Prices trended lower owing to few inquiries last week, minimal demand from abroad, and liquidity crunch.

Meanwhile, weekly average prices of silico manganese in the domestic market dropped by 1% w-o-w to INR 73,520/t ex-Durgapur, INR 73,320/t ex-Raipur, down by 1% w-o-w, and ex Vizag at INR 74,050/t. Prices for silicon manganese have been continuously falling due to limited demand from steel mills and few export inquiries.

Ferro manganese

Export prices of HC70% ferro manganese remained stable w-o-w at $931/t, down by 1%. Prices of HC75% were at $1,034/t, down 1% w-o-w. Meanwhile, domestic ferro manganese prices remained unchanged w-o-w at INR 76,070/t ex-Durgapur, while ex-Raipur prices were down by 2% w-o-w at NR 76,300/t. Prices of ferro manganese remained stable due to limited demand for special steels and imbalance in supply and demand.

Ferro chrome

According to SteelMint's assessment on 27 April, the majority of producers were offering at around INR 105,000/t exw Jajpur. Major reason for the rise in prices was due to improved market sentiments and production costs. OMC's chrome ore auction also boosted prices as material was booked at premium rates.

One of India's biggest producers halted dispatches this week due to an accident and may resume supplies shortly. This resulted in prices increasing further as producers feared supply shortages.

Ferro silicon

According to SteelMint's assessment on 28 April, Indian ferro silicon (70%) prices stood at INR 123,000/t exw, up INR 1,900/t w-o-w. Bhutan's offers were at around INR 123,300/t exw. Indian prices increased as a result of higher production costs and demand.

It is anticipated that the power crisis in Meghalaya, a major hub for ferro silicon, will continue until monsoons. Manufacturers from Guwahati and Bhutan were also delaying their offers due to an expected price rise.

Prices in China decreased this week marginally by 0.73%. Due to the upcoming Labour Day holidays and a new round of steel mill bids, it is predicted that the market will follow the same trend.

Trade

SteelMint recorded bulk deals of around 7,800 t of ferro alloys this week. Out of this, manganese deals comprised around 4,500 t, ferro chrome 700 t, and ferro silicon around 800 t.

Tenders and auctions

• SAIL issued a purchase tender for 64,150 t of high carbon (HC) silico manganese (grade 60-15, size: 25-50 mm) for its Durgapur Steel Plant (DSP). The last date for submission of bids is 6 May and the bid offer is valid for 30 days from the auction date. SteelMint assessed silico manganese 25-150 mm, HC 60-14 prices at INR 74,000/t exw-Durgapur on 21 April.
  
  
• Glencore-Merafe, South Africa's major ferro chrome producer, a joint venture between Glencore and Merafe group, reported ferro chrome production of 400,000 t in Q1CY2023, an increase of 3% y-o-y compared to 387,100 t in Q1CY2022. Out of total production Merafe, that holds a 20.5% share, contributed 103,000 t, up 3% y-o-y.
  
  
• Chinese stainless steel giant Tsingshan has kept ferro chrome tender prices unchanged m-o-m in May at RMB 8795/t ($1,271/t) DAP, including taxes, with delivery before 10 June. The delivery price ex-Tianjin port will be lower by RMB 150/t ($22/t). As per sources, ferro chrome (HC:50%) prices are at RMB 8,550/t ($1236/t) ex-Tianjin.
  
  
• SAIL held an auction for 600 t of silico manganese from its Chandrapur Ferro Alloy Plant (CFP) on 28 April. Material was available in various grades and sizes. SteelMint's assessment for silico manganese (60-14, 25-150 mm) prices stood at INR 73,600/t exw-Raipur on 24 April.
  
  
• Bharat Heavy Electricals Limited (BHEL) conducted a reverse auction for 40 t of ferro molybdenum (Mo:60% min, size: 10-50mm) on 22 April. The entire material was booked at around INR 2,974,500/t FOR, inclusive of all taxes. Excluding GST and GEM portal charges, prices were at around INR 2,508,222 /t FOR, sources informed.
  
  
• SAIL-Rourkela Steel Plant (RSP) conducted a reverse auction for 10,000 t of silico manganese (60-15; 25-50 mm) on 25 April. The material was booked at INR 71,878/t FOR (excluding GST and GEM portal charges). SteelMint's assessment for silico manganese (60-14; 25-150mm) prices stood at INR 74,000/t exw-Durgapur on 25 April.
  
  
• South32's manganese ore production fell by 15% q-o-q to 1.261 mnt in Q3FY23 compared to the previous quarter. Production decreased amid weak market conditions and higher-cost transportation. Total production during nine months ended March 2023 (July 2022-March 2023) rose by 6% to 4.1 mnt from 3.96 mnt in the same period last year, of which output from Australia stood at 2.67 mnt and from South Africa at 1.5 mnt.