Weekly round-up: Production cuts, improved export inquiries drive up Indian ferro alloys prices

The Indian ferro alloys market functioned well with improved trades and export inquiries. There were supply crunches and production minimisations in major regions too. Prices of manganese ore and ferro silicon remained steady. Whereas, silico manganese, ferro manganese, ferro molybdenum and ferro chrome were on a rising mode.

Supply shortages caused Indian silico manganese prices to arise

Indian silico manganese prices saw an uptick in its prices by INR 1,600/t as there were supply shortages in the domestic markets. Additionally, increased export inquiries and mass purchasing at higher prices could also be the reason for rise in prices. However, the domestic billet index was at INR 39,800/t, down by INR 1,200/t ex-Raipur. As of 22 December, 2023, Indian silico manganese (60-14) was traded at around INR 64,700-65,500/t exw Durgapur, Raipur, and Vizag.

Ferro manganese prices up w-o-w on supply crunches and production cuts

Prices of ferro manganese (HC70%) rose by INR 1,000/t this week due to the ongoing supply shortages in major regions and production being minimised by the producers. Furthermore, the export enquiries too improved that led to an increase in the ferro manganese prices. According to SteelMint, ferro manganese offers in Durgapur and Raipur on 22 December were INR 64,500/t exw.

Imported manganese ore prices remain stable w-o-w

Prices of imported manganese ore Mn: 37-46% remained firm this week. Prices of Mn37% were assessed at $3.65/dmtu inched down by $0.05/dmtu, Mn44% at $4.3/dmtu, and Mn46% at $4.6/dmtu drop by $0.1/dmtu. All prices are CIF India. On the other hand, imported manganese offers have also remained stable w-o-w. The current offers for lumps Mn 37% from South Africa is $3.7/dmtu with around 15,000-20,000t bookings being concluded at these levels this week.

IEX spot prices go up

Spot electricity prices (17 December-23 December) in the day-ahead-market at the Indian Energy Exchange (IEX) went up by 8% w-o-w to INR 4.82/unit against INR 4.48/unit last week. The prices increased due to uptick in purchase bids while there was lesser availability of power to support the demand.

Indian ferro chrome prices rise post-auctions

On 22 December, prices of Indian ferro chrome (HC 60%, Si:4%) increased by INR 2,800/t w-o-w to INR 109,900/t exw-Jajpur as after auction results producers rose the prices. Vedanta-FACOR's ferro chrome auction on 13 December got concluded at INR 107,100/t exw for the bigger lot of 10-150 mm. And at OMC's auction on 19 December, entire material of 39,500 t was sold with premium going up to 13%. However, stainless steel prices continued their downward trend, the 304 grade fell by INR 2,000/t w-o-w to INR 178,000/t exw-Mumbai.

Indian ferro silicon prices stay marginally stable on fewer trades

Prices of Indian ferro silicon (FeSi:70%) remained largely stable with a slight decline by INR 50/t this week as the trades were on the lower side due to availability of enough stocks. The coming days might be the same for the ferro silicon market. According to SteelMint, prices of ferro silicon in India on 22 December hovered at INR 101,800/tonne (t) exw-Guwahati.

Ferro molybdenum prices surge amid hike in LME future prices

Indian ferro molybdenum prices jumped up by INR 3,05,000/t this week on increased global prices and rise in London Metal Exchange (LME) future prices. It is anticipated that prices might stay steady, further hike in prices is possible only in shortage in molybdenum oxide supply. As of 20 December,2023, Indian ferro molybdenum prices stood at INR 2,445,000/t exw-Nagpur on 60% pro rata basis.

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