Ferro alloy offers continued to slide on low buying tendencies by the end-user industries, sources informed ISMW.
Offers for ferro silicon, silico manganese and ferro chrome declined on low procurement. However, ferro vanadium, high carbon ferro manganese, ferro moly and manganese ore prices remained unchanged.
Sources said Ferro Alloys prices in domestic markets inched down on higher supplies compared to demand.
One of the reasons for softness in prices of select Alloys was anticipation of higher production to capture export market in view recent sharp depreciation in Indian currency, a trader said.
With Indian rupee turning weak, the prices of ferro alloys for export has become a bit competitive and there are talks that domestic producer might increase production to cater to expected overseas demand, they said.
If the production indeed increases in coming days without matching increase in domestic demand, there is a possibility of higher availability of material and this affected the sentiment during the day, they said.
Ferro silicon: Ferro silicon prices fell by Rs 500 per ton on low levels of procurement by end-users, sources said.
In the north-east, prices hovered around Rs 59,000 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. The latter work under lower power costs. Power constitutes around 60% of the total production cost in ferro silicon production.
Silicon manganese: Silico manganese prices fell Rs 100 per ton on lack of procurement by steel mills, industry sources said.
Prices in Rourkela stood at around Rs 39,000 per ton owing to lack of activity at the user-end.
The export market remained subdued at $600-640 per ton FOB east coast as against same prices in the previous week on 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 remained unchanged on lack of procurement by stainless steel-makers, industry sources said.
Ferro manganese prices in Raipur were quoted at around Rs 39,100 per ton.
In the export market, ferro manganese 70% was quoted at $580-625 per ton FOB as against the same price 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 Rs 400 per ton on low trading activity in the market, industry sources said.
HC ferro chrome prices were quoted at Rs 58,000 per ton in the Indian market.
Stainless steel plants have not been replenishing ferro chrome stocks as stainless steel flat prices remained low.
Prices are down as many 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.
Chrome ore prices eased on low procurement by end-users.
The last chrome ore e-auction led to reduction in prices of all grades of the product.
Following table gives indicative price (ex-works) of various alloys and ores:
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Ferro Alloys |
Unit |
Size |
Market |
Price (Jan 22, 2016) |
Price (Jan 15, 2016) |
W-O-W |
Ferro Silicon |
Rs/Ton ex-works |
70-75% |
Guwahati |
59000 |
59500 |
-500 |
Ferro Vanadium |
Rs/kg ex-works |
50% |
|
485 |
485 |
0 |
Silicon Manganese |
Rs/Ton ex-works |
60-14 |
Rourkela |
39000 |
39100 |
-100 |
HC Ferro Manganese |
Rs/Ton ex-works |
70% |
Raipur |
39100 |
39100 |
0 |
Ferro Moly |
Rs/kg ex-works |
60% |
|
555 |
555 |
0 |
HC Ferro Chrome |
Rs/Ton ex-works |
60% |
Jajpur |
58000 |
58400 |
-400 |
Manganese Ore |
Rs/Ton ex-works |
37.5% lumps |
Balaghat |
6700 |
6700 |
0 |
Chrome Ore |
Rs/Ton ex-works |
52-54% |
Barbil |
9600 |
9600 |
0 |
Source: Traders