Weekly round-up: Ferro alloys market shows downtrend

This week, the overall domestic market for ferro alloys declined due to weak demand in the steel market.

Manganese ore
Global manganese ore imports prices remained stable with marginal corrections last week of around $5.5/dmtu for grade 37%, $7.60/dmtu for grade 44% and lumps, $8.10/dmtu for grade 46%. However, domestic manganese ore prices (MOIL) decreased by 5% to INR 15,447/t for May and June 2022 dispatches.

Power prices
According to the Indian Energy Exchange (IEX) weekly average spot prices (from 29 May-4June) in the day-ahead market rose by 33% w-o-w to INR 6.41/unit this week as against INR 4.81/t unit last week due to shortage in power supply.

Silico manganese
Exported silico manganese prices decreased by 6% on a weekly basis to $1,100/t (60-14) and $1,220/t (65-16) from Haldia/Vizag ports amid muted demand in importing countries. Meanwhile, domestic silico manganese prices declined by 3% to INR 79,280/t ex- Durgapur, INR 79,820/t ex- Vizag  and INR 82,100/t ex-Raipur w-o-w.

Ferro manganese
Exported ferro manganese prices decreased by 8% to $1,148/t for HC 70% and declined by 5% to $1,240/t for HC 75% grade. Meanwhile domestic ferro manganese prices decreased by 3% to INR 87,260/t and by 5% INR 80,020/t.

Ferro chrome
Indian ferro chrome prices fell due to high level of inventory and weak demand in the export market. Prices of HC60% grade decreased by INR 4,100/t w-o-w to INR 115,500/t exw-Jajpur assessed on 2 June. Limited buying amid production cuts undertaken by the stainless-steel manufacturers also contributed to the fall in ferro chrome prices.

Ferro silicon
Indian ferro silicon prices dropped due to weak demand as most of the market participants were in wait-and-watch mode in an anticipation of further fall in prices. They were forced to reduce offers by INR 8,000/t w-o-w to INR 128,000/t exw-Guwahati and Bhutan.

Trade and tenders
SteelMint recorded this week trade of around 11,000 t out of which manganese alloys has been traded at around 8,500t, ferro chrome, at 1,500 t and ferro silicon, at 1,000.

In addition, Vedanta’s ferro chrome auction received limited participation on 4 June due to weak demand mainly from traders due to production curtailment of stainless steel and uncertainty over a possible bounce-back in ferro chrome prices.