Global prices for ferroalloys declined in mid-April

Spot offers for Mn 65% silicomanganese in China fell by $6/t from April 14 to April 21 – to $799-$836/t EXW, according to BigMint. During this period, futures contracts for silicomanganese of this class for delivery in May fell by $4/t – to $811/t on the Zhengzhou Commodity Exchange (ZCE). This reflects the pessimism of traders who do not believe in improving the situation in the short term.

The indicative price of Mn 53% silicomanganese in India fell by $6/t – to $985/t EXW Durgapur as of April 21 in the first half of the month. The real selling price was lower, according to BigMint. In particular, a local plant in Durgapur recorded a deal for 210 tons of product at $982/t EXW.

In April, electricity tariffs in India were raised. It is estimated that this will increase the cost of production of ferroalloys by $58/t. In addition, Australian manganese ore rose by 4% – to $5/t CIF China in the first half of April.

However, the plants are not yet able to compensate for the increased costs at the expense of buyers. Thus, an attempt to increase export quotations by $3/t to $945/t FOB in the first decade of April led to a reduction in requests from importers from Turkey, the UAE and Japan.

In addition, opportunities for exporters are diminishing due to the anti-dumping investigation into US imports of ferroalloys launched in April by the International Trade Commission (ITC). The investigation covers supplies from Brazil, Malaysia and Kazakhstan. It is likely that producers from these countries will resort to redirecting their products to other markets, putting pressure on the current price level.

The deterioration in export opportunities has so far prevented Indian ferroalloy producers from benefiting from rising domestic steel prices. In this case, additional volumes of their products are directed to the domestic market. Further growth in prices for finished steel due to the introduction of a 12% import duty will create preconditions for a rise in prices for ferroalloys by the end of Q2.

As reported, the cost of rebar in India in the first half of April increased by $12/t – to $668/t EXW Mumbai. Metal traders expect further price increases in the next few weeks. The forecast is based on confidence in the strength of demand for rebar and structural shapes from local construction companies.