Weekly round-up: Ferro alloys prices tumble on weak demand

Ferro alloys prices decreased this week on the domestic market as a result of dim outlook. Demand for all sub-commodities was sluggish on both the local and global markets.

Manganese ore

India's manganese ore import prices for Mn: 44-46% remained unchanged w-o-w. Prices of Mn37% grade was at $3.95/dmtu, stable w-o-w; Mn44% stood at $4.85/dmtu, while Mn46% grade was offered at $5.2/dmtu. All prices were on CNF India basis. Recently, the manganese ore market has shown a tendency to stabilise as procurement remained generally limited last week, and buyers and suppliers remained in a standstill. The downstream performance was low and is expected to remain so.

However, it is anticipated that the short-term rise in manganese ore prices might not be effective in the import market.

IEX power

According to Indian Energy Exchange (IEX), the weekly average spot prices (4-10 June) in the day-ahead-market increased 16% w-o-w to INR 6.331/unit as against INR 5.440/unit last week. A spike in power demand compelled buyers to raise their offers for power procurement as purchase bids exceeded sell bids by around 1.2 times this week.

Silico manganese

Prices of silico manganese, brought in from Haldia and Vizag ports, dropped 3% w-o-w. Prices of the 60-14 grade were down by 3% w-o-w to $855/t. Meanwhile, 65-16 grade prices stood at $941/t w-o-w.

According to SteelMint, prices of Indian silico manganese dropped 1% w-o-w on 9 June. Prices were offered at INR 70,700/t ex-Durgapur, INR 72,000/t ex-Vizag, nearly stable w-o-w, and INR 71,300/t ex-Raipur, down 1% w-o-w. While domestic and export trade remained weak and the market remained cautious, steel mills and traders sought price reduction.

Owing to high production costs, producers remained less active in floating offers which also resulted in a marginal decrease in prices.

Ferro manganese

India's exported ferro manganese prices decreased by 1% w-o-w at $905/t FOB India for HC70%. However, prices for the HC75% grade fell 2% w-o-w to $952/t FOB India.

As of June 9, the price of ferro manganese in India was down by 1% w-o-w at INR 73,100-73,800/t ex-Durgapur and ex-Raipur. The supply side's output has not expanded significantly, and current demand is under pressure. The ferro manganese spot market has a low transaction volume and is presently struggling. Both buyers and sellers in the market were hesitant.

Ferro Chrome

According to SteelMint's assessment on 8 June, Indian ferro chrome prices were hovering at around INR 112,700/t exw-Jajpur. No deals were concluded at higher offers, with offers ranging between INR 112,700-113,000/t. Indian ferro chrome (HC60%) prices fell marginally by INR 200/t this week amid moderate supply as well as demand.

Stainless steel prices for 304 and 316 grades fell by INR 1,000/t this week, as assessed by SteelMint on 6 June. As a result, stainless steel producers tried to book ferro chrome at reduced prices, but producers were unwilling to lower offers because they had adequate orders in hand.

Ferro silicon

According to SteelMint's assessment on 9 June, Indian ferro silicon prices were at INR 116,800/t exw-Guwahati, while Bhutan's offers stood at around INR 116,600/t exw, down INR 400/t w-o-w. The north eastern market usually follows Bhutan's price, which was INR 117,000/t exw earlier this month. However, producers were unable to keep prices at that level since demand was low and buyers expected more price reduction. As a result, prices have fallen, and some transactions have been concluded at INR 115,000/t exw, according to sources.

Trade

SteelMint recorded bulk deals of around 6,500 t of ferro alloys this week. Out of these, manganese deals comprised 5,400 t, ferro chrome 500 t, and ferro silicon around 600 t.

Tender and auctions