Weekly round-up: Ferro alloys prices remain supported, ferro silicon leads the race

• Ferro silicon prices jump up as Bhutanese producers withhold offers on BIS expiration.
  
  
• Indian ferro chrome prices rise, likely to increase further following OMC's chrome ore auction results.
  
  
• Domestic silico manganese prices stable on consistency in imported manganese ore prices.
  
  

Indian ferro silicon prices on a 5-month high amid Bhutan BIS expiry

Indian ferro silicon (FeSi:70%) prices experienced an increase of INR 700/t ($8/t) exw-Guwahati. The expiry of the Bureau of Indian Standards (BIS) license for several producers in Bhutan, crucial for exporting materials to India, resulted in a supply shortage in the Indian market. This prompted Indian producers to quote higher prices. There are expectations that this issue might be resolved by the end of the month. As of 19 January, SteelMint reported ferro silicon prices in India at INR 110,200/t ($1,326/t) exw-Guwahati and INR 111,500/t ($1,341/t) exw-Bhutan, reflecting a price surge of INR 5,500/t ($66/t).

Ferro chrome prices rise amid demand-supply mismatch

On 19 January, Indian ferro chrome prices (HC 60%, Si:4%) witnessed an increase of INR 300/t ($4/t) to reach INR 113,000/t ($1,359/t) exw-Jajpur. The price surge was attributed to supply-demand constraints, and further increases are anticipated, especially following OMC's chrome ore auction where buyers booked the entire quantity at a higher premium. Meanwhile, prices for stainless steel (304 grade) remained stable w-o-w at INR 173,000/t ($20,808/t) exw-Mumbai.

Stability in silico manganese prices amid aggressive negotiations, consistent imported manganese ore prices

Indian silico manganese prices remained stable, influenced by the firmness in imported manganese ore prices and increased overseas inquiries. Uncertainty in steel prices and aggressive negotiations led to need-based buying. Export prices for silico manganese (60-14) stood at $802/t FOB Vizag/Haldia, while silico manganese (65-16) was priced at $904/t.

The domestic steel billet index by SteelMint was assessed at INR 39,850/t ($479/t) exw-Raipur on 20 January, 2024, down by INR 850/t ($10/t). Silico manganese (60-14) traded at approximately INR 64,200-64,700/t ($772-$778/t) exw Durgapur, Raipur, and Vizag on 19 January, 2024.

Ferro manganese prices consistent on tight demand

Ferro manganese (HC70%) prices remained stable w-o-w on limited demand and continual production cuts. According to SteelMint, ferro manganese offers in Durgapur and Raipur on 19 January ranged from INR 64,800 to INR 65,000/t ($780-$782/t) exw.

Imported manganese ore prices stable on limited demand

Prices of imported manganese ore Mn: 37-46% remained sturdy on limited demand in the domestic market. Prices of Mn37% were assessed at $3.85/dmtu up by $0.05/dmtu, Mn44% at $4.35/dmtu, and Mn46% at $4.65/dmtu. All prices are CIF India. India has witnessed a 7% increase in manganese ore (Mn37%, Mn44%, and Mn46%) weekly import shipments.

IEX spot prices go up

Spot electricity prices in the day-ahead market at the Indian Energy Exchange (IEX) increased by 10% w-o-w, reaching INR 5.86/unit compared to the previous week's INR 5.31/unit (13 January-20 January). Renewed buying interest on the exchange, coupled with a decrease in power sell-bids on the supply side, contributed to the rise after a period of subdued demand in recent weeks.

Ferro molybdenum prices down on global price decline

Indian ferro molybdenum prices witnessed a decline of INR 112,000/t ($1,347/t) this week, reflecting a global trend with notable decreases in prices, particularly in the London Metal Exchange (LME) and China. As of 17 January, the prices for Indian ferro molybdenum were at INR 2,348,000/t ($28,247/t) exw-Nagpur on a 60% pro rata basis.

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