Weekly round-up: Indian ferro alloys prices showed mixed sentiments on improving market outlook

The Indian ferro alloys market reflected mixed sentiments as the global and domestic markets anticipated a positive market outlook. Prices of manganese ore remained firm. Whereas, silico manganese, ferro manganese, ferro silicon, and ferro chrome were on an increasing mode unlike ferro molybdenum that showed a declining trend.

Silico manganese prices rise on increasing steel prices and production cuts

Indian silico manganese prices went up by INR 750/t due to the rising supply constraints amid production cuts in major producing regions. Furthermore, the hike in steel prices put a pressure on sellers to increase silico manganese prices. Additionally, the domestic billet index was at INR 41,000/t, up by INR 1,000/t ex-Raipur. As of 15 December, 2023, Indian silico manganese (60-14) was traded at around INR 63,000-64,000/t exw Durgapur, Raipur, and Vizag.

Ferro manganese prices increase on supply shortages

Prices of ferro manganese (HC70%) increased by INR 700/t this week as there were supply constraints in the market this week. According to SteelMint, ferro manganese offers in Durgapur and Raipur on 15 December were INR 63,500/t exw.

Imported manganese ore prices remain firm w-o-w

Prices of imported manganese ore Mn: 37-46% remained stable this week. Prices of Mn37% were assessed at $3.7/dmtu, Mn44% at $4.3/dmtu, and Mn46% at $4.7/dmtu. All prices are CIF India. Overall global demand and prices followed a wait and watch approach. On the other hand, India witnessed a substantial recovery in manganese ore (Mn37%, Mn44%, and Mn46%) import shipments, surging by an impressive 266% compared to the previous week, reaching 180,765 tonnes during 6-12 December, 2023, as per vessel line-up data tracked by SteelMint.

IEX spot prices increase

Spot electricity prices (10 December-16 December) in the day-ahead-market at the Indian Energy Exchange (IEX) increased by 27% to INR 4.48/unit this week against INR 3.53/unit last week upon gradual uptick in demand. The quantum of purchase bids at the exchange went up by nearly 35% w-o-w. The gap between buy-sell bids reduced this week, but still sell-side bids were higher than buy bids by around 1.1 times.

Indian ferro chrome prices inch up as the bids and offer gap improve

On 15 December, prices of Indian ferro chrome (HC 60%, Si:4%) rose by INR 1,700/t w-o-w to INR 107,300/t exw-Jajpur. The gap between bids and offers improved, but the market primarily witnessed need-based purchasing. FACOR's auction conducted on 13 Dec'23 fetched H1 price of INR 107,100/t exw for bigger lot of 10-150 mm and the forthcoming OMC's chrome ore auction on 19 Dec'23 will provide further clarity on the prices. However, stainless steel prices continued their downward trend, declining by INR 5,000/t w-o-w for the 304 grade, with prices reaching INR 180,000/t exw-Mumbai, there was a drop of INR 5,000/t in stainless steel prices w-o-w for the 304 grade and its prices stood at INR 185,000/t exw-Mumbai on 6 December.

Indian ferro silicon prices rise on constant trade and demand

Prices of Indian ferro silicon (FeSi:70%) inched up by INR 150/t this week as the demand and trades remained firm. The coming days for ferro silicon would stay the same with slight variations. According to SteelMint, prices of ferro silicon in India on 15 December hovered at INR 101,850/tonne (t) exw-Guwahati.

Ferro molybdenum prices down amid constant decline in stainless steel prices

Indian ferro molybdenum prices decreased by INR 40,000/t this week as the stainless steel prices shrank continuously. It is anticipated that prices might stay range-bound with minor fluctuations after looking at the current state of the market. As of 13 December,2023, Indian ferro molybdenum prices stood at INR 2,140,000/t exw-Nagpur on 60% pro rata basis.

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