Weekly round-up: Ferro alloys prices slide amid sluggish market sentiment

Ferro alloys prices in the domestic market dropped this week. Demand for all sub-commodities remained weak in both the domestic and international markets.

However, ferro chrome prices edged up in anticipation of more price hikes even as some ferro chrome producers held back their offers for the domestic market.

Manganese ore

India's manganese ore import prices for Mn: 44-46% were down 2% w-o-w. Prices of Mn37% grade were at $3.95/dmtu, down 1% w-o-w; Mn44% stood at $4.8/dmtu, while Mn46% grade was offered at $5.15/dmtu. All prices were on CNF India basis. Recently, the manganese ore market has witnessed a downtrend, and prices has fallen from last week.

IEX power

According to Indian Energy Exchange (IEX),weekly average spot prices (21-27 May) in day-ahead-market dropped 21% w-o-w to INR 4.378/unit as against INR INR 5.567/unit last week. Supply-side improvements led by the return of some gas-based power generation weighed on bid prices.

Silico manganese

Prices of silico manganese, brought in from Haldia and Vizag ports, dropped 1% w-o-w. Prices of 60-14 grade were down by 1% w-o-w to $900/t. Meanwhile, 65-16 grade prices stood at $971/t w-o-w.

According to SteelMint, domestic Indian silico manganese prices decreased by 1% w-o-w on 27 May. Prices stood at INR 72,600/t ex-Durgapur, INR 73,400/t ex-Vizag, down 1% w-o-w, and INR 73,400/t ex-Raipur, down 1% w-o-w.

Steel demand has gradually declined due to global supply-demand imbalance and weak demand in both domestic and overseas markets. The downstream market slowed down, and steel mills did not purchase aggressively, causing prices to fall.

Ferro manganese

India's exported ferro manganese prices decreased by 1% w-o-w to $918/t FOB India for HC70%. However, prices for HC75% grade fell 1% w-o-w to $975/t FOB India.

As of May 27, the price of ferro manganese in India was down by 1% w-o-w at INR 75,000/t ex-Durgapur and ex-Raipur. Prices for ferro manganese are trending lower due to low demand.

Ferro chrome

According to SteelMint's assessment on 25 May, Indian producers have started quoting at around INR 112,000-113,000/t exw-Jajpur. However, around 1,700 t of transactions have been concluded at around INR 111,000-112,000/t exw-Jajpur.

Some ferro chrome manufacturers held back their offers for the domestic market in anticipation of price hike. One major smelter has cut production, causing market deficit. Furthermore, when smelters increased their supply to the export market, local supplies dropped.

Furthermore, increasing raw material costs and strong market sentiment contributed to a rise in ferro chrome prices in China this week. The domestic price per tonne ranged between RMB 9,100 and RMB 9,300 ($1,286 and $1,314). Rising stainless steel production has raised demand for ferro chrome.

Ferro silicon

According to SteelMint's assessment on 26 May, Indian ferro silicon prices were at around INR 118,700/t exw-Guwahati, down by INR 3,400/t w-o-w, while Bhutan's offers stood at around INR 121,750/t exw. Demand went down further compared to last week. The majority of buyers were hesitant to purchase material in anticipation of a drop in fresh offers to be floated from Bhutan next month.

Stainless steel demand was also weak, with 304 grade HRC prices falling by INR 3,000/t this week, causing ferro silicon prices to decline in tandem, as evaluated on 23 May. As a result, market players were hesitant to purchase raw materials because they were unclear about future market direction. Ferro silicon demand fell w-o-w. The majority of purchasers were cautious about acquiring material since they expected a decline in fresh offers from Bhutan next month.

Trade

SteelMint recorded bulk deals of around 5,500 t of ferro alloys this week. Out of this, manganese deals comprised 3,300 t, ferro chrome 1,700 t, and ferro silicon around 500 t.

Tender and auction