Weekly round-up: Ferro alloys prices remain steady even amid soft demand

Domestic ferro alloys prices this week remained stable both in the domestic and overseas markets as there was little demand for any sub-commodities.

Manganese ore

The manganese ore market witnessed a downtrend last week. Import prices for Mn: 44-46% grade into India were down 1% w-o-w. Prices of Mn37% grade were at $4/dmtu, down 1% w-o-w; Mn44% at $4.9/dmtu, while Mn46% at $5.25/dmtu. All prices were CNF India.

IEX power

According to Indian Energy Exchange (IEX), the weekly average spot prices (7-13 May) in the day-ahead-market registered a sharp uptick of 58% w-o-w to INR 5.22/unit as against INR INR 3.3/unit last week. The rebound in prices was due to an uptick in purchase bids for electricity procurement supported by gradual rise in power demand post untimely rains.

Silico manganese

Export prices of silico manganese from Haldia and Vizag ports went down marginally by 1% w-o-w. Prices of the 60-14 grade were up 1% w-o-w to $918/t while those of 65-16 grade remain unchanged to $1,006/t. Supply and demand mismatch led to the uptrend in export prices.

Domestic silico manganese prices edged up by 2% w-o-w on May 12, as per SteelMint assessment. Prices were offered at INR 73,750/t ex-Durgapur, INR 74,600/t ex-Vizag, and INR 74,550/t ex-Raipur, stable w-o-w. Producers across the country have curtailed output and are now booked for more than a week. The recent increase in Andhra Pradesh's energy tariffs, along with the elimination of tariff fee compensation, has influenced pricing.

Ferro manganese

India's exported ferro manganese prices were constant w-o-w to $933/t FOB for HC70% and prices for HC75% dropped by 1% w-o-w to $1,006/t FOB.

Domestic ferro manganese in India were nearly stable w-o-w at INR 75,750- 76,500/t ex-Durgapur and ex-Raipur. Prices for ferro manganese remained stable as demand for special steel slowed.

Ferro chrome

According to SteelMint's assessment on 11 May, market participants concluded deals of around 2,000 t at a price range of INR 107,000-108,000/t exw-Jajpur. Prices for ferro chrome in India were steady w-o-w, with a little uptick seen despite low demand. Following the acceptance of the dominant proposals from the previous week, manufacturers began to make somewhat greater offers.

Additionally, after the Labour Day break, ferro chrome prices in China surged due to a minor rebound in production levels at stainless steel mills, resulting in increased buying interest in the domestic market. This was a favourable development for China's ferro chrome business, and Indian manufacturers are anticipating healthy demand from China, as demonstrated by their sales of roughly 4,000t to China on a CNF basis this week, as evaluated on 11 May.

Ferro silicon

According to SteeelMint's assessment on 12 May, around 1,200-1,300 t of ferro silicon (70%) trades were concluded at INR 122,800-1,23,000/t exw both from Guwahati and Bhutan. Despite continued power outages in Meghalaya, a key region for the production of ferro silicon, prices decreased amid weak demand.

Previously, Guwahati-based producers were hesitant to sell material at lower rates because of high manufacturing costs. However, the majority of buyers were hesitant to reserve large amounts at higher prices because they believed prices would soon decline. Due to ongoing power outages in the north-eastern belt which lowered manufacturers' profit margins, they wanted the market to stay open, which led to a decline in prices.

Trade

SteelMint recorded bulk deals of around 7,700 t of ferro alloys this week. Out of this, manganese deals comprised 32,00t, ferro chrome 2,000 t, and ferro silicon around 2,500 t.

Tender and auction