Weekly round-up: Ferro alloys prices surge amid robust steel demand

• FeSi reaches 7-month high following lift in Bhutan's offers
  
  
• SiMn rises to highest in 2 months on improving steel prices
  
  
• FeCr touches 3-month peak post-Vedanta-FACOR auction
  
  

Ferro alloys prices trended up amid robust demand in the steel market. While silico manganese prices touched a two-month high, last seen in August, ferro chrome prices hovered at a three-month peak, last achieved in July. Ferro silicon prices reached their highest in seven months amid a rise in Bhutan's offers, with current levels previously seen in March.

Silico manganese rises on high steel prices, tight supply

Silico manganese (60-14) prices surged by INR 2,750/tonne (t) ($33/t) w-o-w to a two-month high of INR 69,000-69,800/t ($827-836/t) exw in Raipur, Durgapur, and Visakhapatnam. Strengthening steel prices are propelling domestic silico manganese offers higher amid tightening supply.

Prices of silico manganese (65-16) stood at $926/t FOB Vizag/Haldia, India, up $19/t w-o-w.

Meanwhile, the domestic steel billet index increased by INR 3,300/t ($40/t) w-o-w to INR 41,900/t ($502/t) exw-Raipur on 4 October 2024.

Ferro manganese prices increase amid improving sentiments

Indian ferro manganese (HC70%) prices were up by around INR 900/t ($11/t) w-o-w to INR 70,500/t ($845/t) exw in Raipur and by INR 1,200/t ($14/t) w-o-w to INR 70,200/t ($841/t) in Durgapur. Ferro manganese prices surged due to rising domestic demand, particularly from steel manufacturers.

Additionally, prices of ferro manganese (HC 75%) stood at $936/t FOB Vizag/Haldia, up $13/t w-o-w.

Imported manganese ore prices stay firm

Prices of imported manganese ore (Mn 37-46%) remained unaltered w-o-w. Mn44% from Gabon stood at $5.05/dry metric tonne unit (dmtu), Mn46% from Australia was at $5.4/dmtu CIF India, and Mn37% from South Africa was assessed at $3.9/dmtu.

Cargo arrivals for manganese ore inched up by 5% w-o-w for Mn37%, Mn44%, and Mn46%.

Ferro chrome prices edge up following auction results, rise in trades

Prices of Indian high-carbon ferro chrome (HC60%, Si:4%) rose to a three-month high of INR 111,300/t ($1,325/t) exw-Jajpur on 4 October, up INR 1,200/t ($14/t) w-o-w. Prices soared following higher bids at Vedanta-FACOR's ferro chrome auction, in which the larger lot of 10-150 mm fetched an H1 tag of INR 110,500/t exw against the base price of INR 110,000/t exw. Trades of around 10,000 t took place in the spot market, further contributing to the rise in prices.

Meanwhile, 304-grade stainless steel hot-rolled coil (HRC) surged w-o-w to INR 183,000/t ($2,179/t) exw-Mumbai, primarily due to a 9% rise in LME nickel prices.

Ferro silicon prices rise following lift in offers from Bhutan

Indian ferro silicon (FeSi:70%) prices increased to a seven-month high of INR 104,000/t ($1,246/t) exw-Guwahati on 4 October, an increase of around INR 7,900/t ($95/t) w-o-w. Prices in Bhutan rose INR 7,000/t ($84/t) w-o-w amid limited supply and elevated offers, reaching INR 102,500/t ($1,228/t) exw. Notably, towards the weekend, a few deals were heard at INR 110,000/t exw-Bhutan.

Additionally, Bhutan's offers increased by INR 11,000/t m-o-m to INR 99,000/t ($1,186/t). Sources attribute the price hike to supply disruptions caused by operational suspensions at certain Meghalaya plants.

Ferro molybdenum prices remain range-bound

Domestic ferro molybdenum prices edged up by INR 16,000/t ($190/t) w-o-w. As of 4 October, prices were at INR 2,566,000/t ($30,558/t) exw-Nagpur on a 60% pro-rata basis. Ferro molybdenum prices in India remained range-bound with slight variations, as the global and domestic sectors witnessed stability as well as steady demand.

Additionally, on the London Metal Exchange (LME), prices were unchanged w-o-w at $21.61/pound.

Indian ferro vanadium prices hold steady

Indian ferro vanadium prices remained unchanged w-o-w at INR 1,133,000/t ($13,493/t) exw-Raipur (for FeV 50%). The market was stagnant, with limited trading activity and weak demand, which kept prices stable. Additionally, rising raw material costs created uncertainty, prompting market participants to act cautiously. This hesitation contributed to the lack of significant market movements, as players carefully assessed their next steps.

IEX spot prices largely stable

Spot electricity prices on the Indian Energy Exchange (IEX) remained largely stable at INR 5.03/unit during the week (28 September-5 October), representing a 4% decline from the previous week's price of INR 5.22/unit. The market continued to experience an overall surplus of sell-side bids compared to buy-side bids, which prevented clearing prices from rising and kept them within the range of INR 4-5/unit throughout the week.

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