Weekly round-up: Downtrend in ferro alloys prices continues on weak steel market sentiment
Soft global demand and a weak domestic steel market adversely affected the domestic ferro alloys market this week, SteelMint notes. Manganese ore Global manganese ore imp...
Soft global demand and a weak domestic steel market adversely affected the domestic ferro alloys market this week, SteelMint notes.
Global manganese ore import prices fell slightly last week to $4.6/dmtu for grade 37%, $6.25/dmtu for grade 44%, and $6.85/dmtu for grade 46%. The decrease in manganese ore prices wa driven by cuts in production and lack of demand for ferro alloys. Manganese ore prices are expected to remain weak in the near term.
IEX power prices
As power demand has slowed down during monsoon, electricity spot prices at IEX (Indian Energy Exchange) remained rangebound on a weekly basis. The average price in the day-ahead market this week (24-30 July) was assessed at INR 5.96/unit as against INR 5.69/unit in the previous week.
Exported silico manganese prices continued to decrease by 3% on a weekly basis to $975/t for 60-14 grade and by 4% to $1,074/t for 65-16 grade from Haldia and Vizag ports amid muted demand from importing countries. Meanwhile, silico manganese prices dropped by 3% w-o-w to INR 76,240 /t ex-Durgapur, INR 75,320/t ex-Vizag and INR 77,120/t ex-Raipur on a weekly basis. During this period of low demand, prices dropped due to uncertain market sentiments.
Exported ferro manganese prices decreased by 3% to $1,023/t for HC 70% and declined by 3% to $1,091/t for HC 75% grade. Meanwhile domestic ferro manganese prices fell by INR 2,790 w-o-w to INR 80,100/t ex-Durgapur and ex-Raipur moved down by INR 2,920/t at INR 82,600/t on weekly basis. Poor demand for stainless and special steel led to the decline in prices of ferro manganese.
According to SteelMint's assessment on 28 July, ferro chrome producers were offering at around INR 100,000-101,000/t exw-Jajpur, down INR 2,300/t exw w-o-w amid bearish market sentiment, as most buyers waiting in expectation of a further fall in prices. Meanwhile, China's Baosteel cancelled its long-term contract and spot purchase for August delivery due to poor stainless steel market conditions. Tsingshan also reduced ferro chrome (Cr50%) tender prices by RMB 1,000/t ($149/t) m-o-m to RMB 7,995/t ($1,188/t) for August delivery.
Ferro silicon offers from Indian producers were unchanged on a weekly basis due to muted demand as customers waited for the Bhutanese plants to announce new products. The prices were also stable because many buyers didn't plan to accumulate stocks. According to SteelMint's assessment on 29 July, offers of Indian producers remained stable w-o-w at around INR 144,600/t exw while offers by Bhutanese producers inched down by INR 1,100/t w-o-w to around INR 145,000/t exw.
SteelMint recorded trades of around 6,800 t of bulk ferro alloys this week out of which manganese alloys traded was around 55,00 t, ferro chrome 800 t and ferro silicon 500 t.
Tenders and auctions
- State-owned SAIL issued a purchase tender for 300 t of HC ferro manganese (Mn70%, 10-30 mm) for its Alloy Steel Plant, Durgapur (ASP). The last date for bid submission is 6 August.
- SAIL invited a purchase tender for 240 t of silico manganese (60-15, Size:10-30mm) for its Alloy Steel Plant, West Bengal. The last date for bid submission is 8 August.
- SAIL has invited a purchase tender for 10,000 t of silico manganese (grade: 60-15, size: 10-50 mm) for its Bhilai Steel Plant, Chhattisgarh. The deadline for submitting bids has been extended to 5 August.
- SAIL-CFP booked 300 t silico manganese (Mn:57%) at around INR 65,000/t at an auction held on 29 July. The total quantity for the auction was 600 t (Mn 53-57%, 0-3mm, 3-10mm).