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Weekly round-up: Reduced export demand, lower bids cause ferro alloy prices to fall

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Silico Manganese

BigMint Bureau

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22 Jul 2023, 17:56 IST

Weekly round-up: Reduced export demand, lower bids cause ferro alloy prices to fall

Ferro alloy prices continued to decline this week as a result of the market's limited export demand, tough negotiations, and reducing bids.

Sub-commodity wise overview

Manganese ore prices fall due to lack of demand in alloy steel

Imported manganese ore prices into India for Mn: 37-46% material remained firm w-o-w. Mn37% grade was assessed at $3.75/dmtu; Mn44% at $4.6/dmtu; and Mn46% grade at $4.95/dmtu. All prices are CIF India. In addition, HBIS opted to reduce silico manganese bids by $25/t m-o-m to RMB 6,700/t for July 2023. UMK and Jupiter Mines Limited decided to lower their manganese ore offers for August 2023 shipments in response to weak demand.

IEX Power increases amid rise in trade activity

According to Indian Energy Exchange (IEX), the weekly average spot price (16 July- 22 July) in the day-ahead-market increased by 8% w-o-w to INR 5.090/unit as against INR 4.722/unit last week. The prices were supported by the increased trading activity which took place to mitigate the shortfall in long-term contacts during monsoon.

Silico manganese prices fall

Indian silico manganese (60-14) prices dropped by 1% w-o-w to INR 65,500-67,750/t exw -Durgapur, Raipur and Vizag, as assessed on July 22, 2023. Prices decreased this week as a result of weak market sentiments, need-based buying, and the slump in export demand. Also, some bulk deals on lower prices had an adverse impact on silico manganese prices.

Despite weak demand, ferro manganese prices remain steady

Indian ferro manganese (HC70%) prices remained firm w-o-w amid low export inquiries and poor demand for special steel. According to SteelMint's assessment on July 22, 2023, ferro manganese offers were hovering at around INR 68,000/t exw in both Durgapur and Raipur.

Ferro chrome prices fall on uncertainties over the future price trend

According to SteelMint, Indian ferro chrome prices were INR 98,000/t exw-Jajpur on July 20, down INR 2,800/t w-o-w. The majority of the deals were closed in the range of INR 97,000-99,000/t. The prices of ferro chrome (HC 60%) in India fell this week. A lower price of chrome ore was anticipated in FACOR's auction, so sellers paused sales during the auction to analyse the impact of OMC's auction. Due to an uncertainty regarding future price patterns, trading activity stalled.

Ferro silicon prices drop on weak demand

According to SteelMint, Indian ferro silicon prices were at INR 107,200/t exw-Guwahati on 21 July. Bhutan's market was particularly hard hit, with prices falling by INR 1,900/t w-o-w to INR 107,700/t exw. As price talks continued and vendors were pushed to offer material at lower rates, Indian ferro silicon (70%) prices fell by INR 800/t w-o-w. Because of long-standing business relationships with buyers, the majority of North East and Bhutan producers decided to cut their offers. Lowering their bids could be a purposeful option to encourage their buyers during a moment of low demand.

Trade