Weekly round-up: Limited demand keeps ferro alloys prices rangebound

Ferro alloys prices in the domestic market remained rangebound this week due to limited demand. As a result of mixed sentiments both in domestic and international markets, demand remained soft. The drop in ferro chrome prices was mainly because of weak demand in domestic market at higher levels. Manganese alloys prices inched down this week as domestic steel demand was modest.

Manganese ore

Global manganese ore import prices for Mn: 44-46% fell by 4% w-o-w. Prices of Mn37% grade were at $4.3/dmtu, down 4%, Mn44% stood at $5.7/dmtu. Meanwhile, Mn46% grade was offered at $6.1/dmtu. Prices for manganese ore decreased as a result of weak market activity.

IEX power

According to Indian Energy Exchange (IEX), the weekly average spot prices (12-18 March) in day-ahead-market was assessed almost stable at INR 5.516/unit as against INR 5.603/unit last week. The market witnessed an untick in purchase bids which was around 1.29 times that of sell bids. However, electricity transactions were concluded at comparatively lower clearing prices.

Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, were nearly stable w-o-w. The 60-14 grade remained stable at $930/t, while 65-16 material was offered at $1,036/t, which remained unchanged w-o-w. Due to fewer queries last week and limited demand from abroad, prices remained stable. Meanwhile, weekly average prices of silico manganese in the domestic market were rangebound w-o-w to INR 73,600/t ex-Durgapur, INR 74,220/t ex-Raipur, down 1% w-o-w, and INR 73,940/t ex-Vizag, remained unchanged w-o-w. Silico manganese prices were rangebound due to lack of local demand and liquidity issues.

Ferro manganese
Export prices of HC70% ferro manganese dropped by 1% w-o-w to $937/t, down by 1%. Prices of HC75% were at $1,034/t, fell by 1% w-o-w. Meanwhile, domestic ferro manganese prices inched down by 2% w-o-w at INR 76,740/t ex-Durgapur, while ex-Raipur prices were down by 2% w-o-w to INR 76,700/t. Due to restricted demand for special steels and an imbalance in supply and demand, prices of ferro manganese inched down.

Ferro chrome
According to SteelMint's assessment on 16 March, Indian ferro chrome (HC60%) prices dropped by INR 3,000/t w-o-w to INR 115,800/t exw Jajpur. Due to weak demand on both the local and international markets, ferro chrome prices declined. The vast majority of purchasers were silent in an anticipation of more price drops. Furthermore, an increased production in China also reduced the interest in Indian ferro chrome. Consequently, ferro chrome prices also fell.

Ferro silicon
According to SteelMint's assessment on 17 March, Indian ferro silicon (70%) prices inched down at around INR 118,700/t exw Guwahati. While, Bhutan's producers were offering at around INR 119,600/t exw. Slow buying forced producers to reduce prices marginally amid selling pressure.

Additionally, ferro silicon demand remained moderate as there was speculation about the further drop in prices. This resulted in a marginal drop in prices amid selling pressure.
On the other hand, Bhutan's producers were unwilling to reduce their offers due to hike in electricity tariffs, which protected prices from a sharp fall.

Trade

SteelMint recorded bulk deals of around 2,900 t of ferro alloys this week. Out of this, manganese deals comprised around 2,000 t, ferro chrome 400 t, and ferro silicon around 500 t.

Tenders and auctions

• ArcelorMittal Nippon Steel India (AM/NS India) has floated a purchase tender for 6,000 t of medium-carbon silico manganese (Mn: min 60%, C: min 2.5%, Size: 10-50 mm) from its Gujarat-based plant. The bid submission date is 18 March, 2023 and the delivery is scheduled at 2,000 t/month. According to SteelMint's assessment on 9 March, 2023, MC silico manganese (53%) prices were at INR 87,000/t exw-Durgapur.
  
  
• SAIL's Bokaro Steel Plant (BSL) concluded a reverse auction for 10,000 t of ferro manganese (HC70%) on 9 March, 2023. The material was booked at around INR 76,895/t FOR, sources informed. SteelMint's assessment of ferro manganese (HC 70%) prices stood at INR 78,000/t exw-Durgapur on 7 March.
  
  
• Merafe, South Africa's major ferro chrome producer, has set its price, which is the European benchmark, at 172 cents/lb for Q2CY23, up 15.4% q-o-q from 149 cents/lb in the previous quarter. This announcement came following the Glencore's decision to cut ferro chrome production this year due to an 18.65% increase in ESKOM's electricity tariffs from April, 2023, sources informed.
  
  
• Bharat Heavy Electricals Limited (BHEL), the corporate entity of Vizag Steel, has invited bids for procurement of 40 t (10-50 mm) of ferro molybdenum (60% min) for two months from the order date. The last date for bid submission is 27 March, 2023. SteelMint's assessment of ferro molybdenum prices stood at INR 3,75,000/t exw-Nagpur on 15 March, 2023.
  
  
• State-run RINL had conducted a reverse auction for 37,000 t (40-100mm) of silico manganese (60-15 grade) on 15 March, 2023. The entire material was booked at INR 87,800/t FOR (including GST and GEM portal charges). Excluding GST and GEM portal charges, prices are at around INR 73,600/t FOR. SteelMint's assessment of silico manganese (60-14) prices stood at INR 74,000/t exw-Visakhapatnam on 15 March.