Weekly round-up: Mixed sentiments in domestic market weigh on ferro alloys prices

Ferro alloys prices fell this week due to mixed sentiments in the market and general decline in local demand. Special steels continue to be in low demand. Ferro alloys demand decreased since fewer big orders for manganese alloys were received from overseas.

Manganese ore
Global manganese ore import prices across grades fluctuated slightly; SteelMint assessed Mn37% rising 1% w-o-w at $4.25/dmtu, $4.6/dmtu for Mn44%, and $5.1/dmtu for Mn46%. Manganese ore prices fluctuate amid mixed sentiments globally. Manganese ore prices might change in the near future as miners are under increasing pressure to sell.

IEX power prices
Electricity prices at day-ahead-market in the Indian Energy Exchange (IEX) witnessed little movement amid improved power availability with bids for power sell exceedingly 1.8 times that of buying bids. In the current week (27 Nov-3 December, 2022) the prices registered a marginal fall of 2% w-o-w to INR 4.64/unit as against INR 4.73/unit in previous week.

Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, were down 2% w-o-w. The 60-14 grade was up by 2% w-o-w to $911/t, while the 65-16 grade dropped by 3% to $1006/t amid limited enquiries from overseas last week.
On the other hand, silico manganese prices were down by 2% w-o-w to INR 72,320/t ex-Durgapur, INR 72,080/t ex-Vizag, and INR 72,800/t ex-Raipur. Both domestic and international demand has been down since last week, resulting in decreased prices.

Ferro manganese
Exported ferro manganese prices were down by 2% w-o-w to $910/t for HC70%. Prices of HC75% grade down by 2% to $1,010/t. Meanwhile, domestic ferro manganese prices were inched down by 1% w-o-w to INR 74,600/t ex-Durgapur, while ex-Raipur was assessed at INR 74,800/t. Prices of ferro manganese remained low due to subdued demand for special steel this week.

Ferro chrome
According to SteelMint's assessment on December 1st, Indian ferro chrome prices fell by INR 1,800/t w-o-w to INR 96,500/t exw-Jajpur due to weak demand at higher prices, as a drop in purchase tender price by a Chinese stainless-steel producer gave confidence to other buyers to book material at lower price. Furthermore, sellers were under pressure due to low demand and excess inventory. Furthermore, some new players have resumed production. Because of the oversupply, manufacturers were forced to lower their prices in order to attract new customers.

Ferro silicon
Indian ferro silicon prices remain unchanged w-o-w amid weak demand as market participants were waiting for the Bhutanese plants to release their new offers. In addition, under pressure steel market also forced buyers to kept their inquiries on hold. According to SteelMint's assessment on 2 December, Guwahati-based producers were offering around INR 122,500/t exw, while Bhutan's offers were at around INR 125,000/t exw.

Trade
SteelMint recorded bulk trades of around 7,400 t of ferro alloys this week, out of which manganese deals comprised around 3,000 t, ferro chrome 3,400 t, and ferro Silicon 1,000 t.

Tender and Auction

• Vedanta-FACOR held a ferro chrome auction on 1 Dec'22. The larger lot of 10-150 mm was concluded at INR 94,600/t exw, an increase of INR 1,000/t over the base price.
  
  
• ArcelorMittal Nippon Steel India (AM/NS India) has floated a supply tender for 1,500 t of medium-carbon ferro manganese (10-50 mm, Mn min 78%, C 1.5%) from its Gujarat-based plant. The last date for bid submission is 7 Dec'22.
  
  
• MOIL, India's largest manganese ore miner, has decreased prices of all grades by 5% on the existing prices with effect from 1 Nov'22. MOIL has reduced ore prices to maintain price parity with international prices amid bearish manganese alloys market. The state-owned miner has offered a balance quantity of 94,831 t of manganese ore for Dec'22.
  
  
• Chinese stainless steel giant, Tsingshan, has reduced its ferro chrome purchase tender prices by RMB 300/t ($110/t) m-o-m to RMB 8,195/t ($1,143/t) delivered to plant including taxes, with delivery latest by 10 January 2023. Delivery price ex-Tianjin port will be lower by RMB 150/t ($21/t).
  
  
• National Mineral Development Corporation (NMDC), India, has refloated a tender for 3,000 t of high-carbon silico manganese (fine size: 25 to 50 mm; Mn: 60%, Si- 15%) for its Nagarnar Steel plant, Jagdalpur. The last date for submission of bid is 30 Nov'22.
  
  
• Rashtriya Ispat Nigam Ltd (RINL), the corporate entity of Vizag Steel Plant, has invited bids to procure 840 t of Low Carbon (HC) ferro manganese (grade:9% and size: 10-6 mm). The last date of bid submission is 5 Dec'22.