Weekly round-up: Rising raw material costs drive up ferro alloys prices

The domestic ferro alloys market saw moderate demand while raw material prices increased this week, which pushed up alloys prices. Ferro chrome prices increased to match export offers amid strong demand. On the other hand, demand surged in response to overseas orders for ferro chrome and manganese alloys, which led to an increase in prices, SteelMint notes.

Manganese ore
Global manganese ore import prices for higher grade (Mn: 44-46%) inched up by 2% w-o-w. Prices of Mn37% grade were at $4.75/dmtu, Mn44% stood at $5.35/dmtu, up by 3 %, and Mn46% grade was offered at $6.75/dmtu, up by 4% on weekly basis.

IEX Power
According to Indian Energy Exchange (IEX), the weekly average spot prices (5-11 February) in day-ahead-market witnessed a hike of 7% w-o-w to INR 5.021/unit as against INR INR 4.701/unit last week.
An uptick in power demand coupled with lower availability from hydro power stations compelled buyers to increase their bids for power.

Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, increased by 1% w-o-w. The 60-14 grade was offered at $977/t, while the 65-16 grade was offered at $1,067/t. There was a slight increase in prices last week due to increased inquiries, foreign demand and a few bulk purchases.
Meanwhile, weekly average prices of silico manganese in the domestic market were up 2% w-o-w to INR 78,000/t ex-Durgapur, INR 77,800/t ex-Raipur, and INR 77,600/t ex-Vizag. Considerable demand for silico manganese was seen in both the domestic and international markets which kept prices supported.

Ferro manganese
Ferro manganese export prices inched up by 1% w-o-w at $969/t for HC70%. Prices for HC75% were at $1,060/t, up 1% w-o-w. Meanwhile, domestic ferro manganese prices rose by 3% w-o-w to INR 79,840/t ex-Durgapur, while ex-Raipur prices were assessed at INR 80,000/t. Hike in silico manganese prices in line with manganese ore prices led to the hike in ferro manganese prices this week.

Ferro chrome
Indian ferro chrome producers increased prices by INR 5,000/t w-o-w to match export offers. Buyers accepted higher prices amid strong domestic demand. Furthermore, rising chrome ore prices due to good buying interest at Chinese ports amid low inventory also influenced producers to increase prices. According to SteelMint's assessment on 9 February, ferro chrome (HC60%) prices were hovering at INR 121,500/t exw Jajpur.

Ferro silicon
According to SteelMint's assessment on 10 February, Bhutanese producers kept prices stable at around INR 126,000/t, while Guwahati's offer for ferro silicon were at around INR 125,500/t. Moderate demand kept prices stable as buyers were hesitant to book material at higher prices due to negative steel sentiments and stable raw material prices. In addition, raw material price stability also discouraged buyers from booking material at higher prices.

Trade
SteelMint recorded bulk deals of around 21,000 t of ferro alloys this week, out of which manganese deals were 13,500 t, ferro chrome 5,500 t, and ferro silicon around 2,000 t.

Tender and auction

• South 32 increased prices of Australian manganese ore lumps (Mn 45%) by $0.58/dmtu to $6/dmtu for March shipments. It has also raised South African semi-carbonate manganese ore prices by $0.27/dmtu m-o-m to $4.65/dmtu. All prices are CIF China. The price hike was primarily due to a surge in demand from China, sources informed.
  
  
• India's Ministry of Defence floated a purchase tender for 44.5 t of ferro silicon (Si-70% min, size: 40-150 mm) for its Metal and Steel Factory, West Bengal. The last date for bid submission is 13 February and the bid-offer is valid for 180 days from the date of the auction.
  
  
• State-owned SAIL rescheduled purchase tender for 11,249 t of silico manganese (60-15, size:10-50mm, P: 0.1% max) for its Bhilai Steel Plant (BSP), Chhattisgarh. The last date for bid submission is 11 February. SteelMint assessed silico manganese (60-14) prices at around INR 75,900/t exw-Raipur on 2 February.
  
  
• Odisha Mining Corporation (OMC) conducted an auction for 71,574 t of chrome ore and 28,987 t of manganese ore of different grades and sizes on 9 February. The offered material was from OMC's Baripada, Rourkela and Talcher mining circles.
  
  
• SAIL's Chandrapur Ferro Alloys Plant (CFP) scheduled an auction for 600 t of silico manganese (Mn 51-56%, 0-3mm, 3-10mm) on 10 February.
  
  
• Major global manganese ore miners increased offers for March shipments amid low stock levels at Chinese ports and limited supply from major exporting countries.
  Comilog (Eramet) raised offers for Gabonese lumps (Mn 44%) by $1.45/dmtu to $5.8/dmtu from January.
  Jupiter (Tshipi) hiked South African semi-carbonate lumps prices by $0.24/dmtu m-o-m to $4.6/dmtu. Prices are on CIF China basis.
  
  
• State-owned SAIL concluded an auction for 1,000 t of HC ferro manganese (Mn70%, 25-50 mm) from its Durgapur Steel Plant (DSP) on 8 February. The material was booked at INR 92,266/t on FOR basis, including GST and GEM portal charges. Excluding GST and GEM portal charges, prices are at around INR 77,800/t FOR.