India Steel Market Watch
October 30: Ferro alloy offers fell marginally on low procurement by the end-user industries, sources informed ISMW.
Offers for ferro silicon, silico manganese, ferro manganese and ferro chrome declined on low procurement. However, ferro vanadium, ferro moly, manganese ore and chrome ore prices remained unchanged.
Ferro silicon: Ferro silicon prices fell by Rs 100 per ton on low levels of procurement by end-users, sources said.
In the north-east, prices hovered around Rs 65,100 per ton in Guwahati.
There was no significant change in trading activity in the market.
Sources said the ferro silicon market has been impacted by cheap supplies from Malaysia, which works under lower power costs. Power constitutes around 60% of the total production cost in ferro silicon production.
Silicon manganese: Silico manganese prices fell by Rs 200 per ton on lack of procurement by steel mills, industry sources said.
Prices in Rourkela stood at around Rs 43,700 per ton owing to lack of activity at the user-end.
The export market remained unchanged at $680-725 per ton FOB east coast owing to low demand in the international market.
Indian producers reported that there were inquiries from the Middle East, South-East Asia and Latin American countries but there were very few confirmed deals.
Ferro manganese: Ferro manganese prices fell by Rs 200 per ton on lack of procurement by stainless steel-makers, industry sources said.
Ferro manganese prices in Raipur are quoted at around Rs 42,200 per ton.
In the export market, ferro manganese 70% was quoted at $640-680 per ton FOB as against the same prices in the previous week as low demand conditions prevailed. There are lesser enquiries from the international markets, sources said.
HC ferro chrome: HC ferro chrome prices fell by Rs 100 per ton on low trading activity in the market, industry sources said.
HC ferro chrome prices were quoted at Rs 60,400 per ton in the Indian market.
Stainless steel plants were not replenishing ferro chrome stocks as stainless steel flat prices remained low.
Prices are down as few producers are sitting on huge inventories and wanting to offload stocks, fearing that the price decline could intensify.
Trade sources reported of low trading appetite, as most buyers are expressing a strong preference to stay out of the market.
India mainly exports its products to China, Japan and South Korea, the stainless steel production hub of Asia.
Manganese ore and chrome ore: Prices of manganese ore remained unchanged after easing on low buying support.
MOIL has cut manganese ore prices by 3-10% across various grades for the third quarter of 2015-16, industry sources said.
The prices were cut in various grades for the October-December quarter on falling demand, sources said.
In the July-September quarter, MOIL had cut prices by 3-12%.
Prices of all ferro grades of ore (expect fines) have been reduced by 3%, silico grade prices have been reduced by 5-10% while prices of manganese ore fines have been reduced by 5% on the previous quarter price.
The price for 37.5% Mn in ferro grade stands at Rs 6,500 per ton in the current quarter, down from Rs 6,700 per ton in the earlier quarter, while the price of 30% Mn lumps in silico grade stands at Rs 4,400 per ton in the current quarter.
Chrome ore prices remained unchanged on low procurement by end-users.
The last chrome ore e-auction led to reduction in prices of all grades of the product. OMC had to cancel allocation of chrome ore concentrate for auction owing to low prices.
Following are ferro alloy prices in different markets:
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Ferro Alloys |
Unit |
Size |
Market |
Price (October 30, 2015) |
Price (October 23, 2015) |
W-O-W |
Ferro Silicon |
Rs/Ton ex-works |
70-75% |
Guwahati |
65100 |
65200 |
-100 |
Ferro Vanadium |
Rs/kg ex-works |
50% |
550 |
550 |
0 |
|
Silicon Manganese |
Rs/Ton ex-works |
60-14 |
Rourkela |
43700 |
43900 |
-200 |
HC Ferro Manganese |
Rs/Ton ex-works |
70% |
Raipur |
42200 |
42400 |
-200 |
Ferro Moly |
Rs/kg ex-works |
60% |
625 |
625 |
0 |
|
HC Ferro Chrome |
Rs/Ton ex-works |
60% |
Jajpur |
60400 |
60500 |
-100 |
Manganese Ore |
Rs/Ton ex-works |
37.5% lumps |
Balaghat |
6500 |
6500 |
0 |
Chrome Ore |
Rs/Ton ex-works |
52-54% |
Barbil |
12700 |
12700 |
0 |
Source: Traders