ferro alloys monthly report aug-2020 - steelmint

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Ferro Alloys Monthly ReportAug-2020

Monthly Report-Aug-2020

Manganese Ore

Prices

India: MOIL increases manganese ore pricesby 10% m-o-m for Sep’ 20

India's largest manganese ore miner revisedmanganese ore prices higher by 10% m-o-m forSep'20. The Silico manganese producers from Raipurwere speculating that MOIL might increase theprices in line with limited production. Theproduction levels have suffered drastically sincelockdown and the effects are prolonged. Last monthMOIL reduced prices by 15% to maintain price paritybetween domestic and imported manganese ores.

India: Karnataka Manganese ore E-Auctionsreceived good response

MSTC-Karnataka, conducted the e-auction forManganese Ore on behalf of Sandur Mines (SMIORE)on 18-19th Aug 2020. The auctions have received ameagre response, as the materials offered on 18thAug received no bids. Meanwhile, the auction on19th Aug received good response with 86% materialwas booked at 22% higher than the total Floor value.Acore Industries Pvt. Ltd and Nava Bharat VenturesLtd were the two highest buyers from Karnatakaauctions with the quantity of 2,520t and 2,016trespectively.

Seaborne Manganese ore prices started togain momentum

Seaborne Manganese ore prices are getting into thelowest levels in July, started gaining in August, asmany smaller miners in South Africa went for shutdown due to lower to no profit margins. This createda notion of supply scarcity and increased the pricesin the global market.


Indian imported manganese ore prices (CNF India)

Grade Origin Aug-20 Jul-20 Jun-20

Lumps, Mn 37.5% South Africa

$4.12/dmtu $4.11/dmtu $4.98/dmtu

Lumps, Mn 44% Fe 5%

Gabon $4.33/dmtu $4.48/dmtu $5.39/dmtu

Lumps, Mn 46% Fe 5%

Australia $4.63/dmtu $4.81/dmtu $5.78/dmtu

Chinese imported manganese ore prices (CNF China)


Lumps, Mn 37.5%

South Africa $3.97/dmtu $3.98/dmtu $4.83/dmtu

Lumps, Mn 44% Fe 5%

Gabon $4.18/dmtu $4.33/dmtu $5.24/dmtu ₹ 6,000

₹ 6,500

₹ 7,000

₹ 7,500

₹ 8,000

₹ 8,500

₹ 9,000

₹ 9,500

₹ 10,000

0

5

10

15

20

25

30

35

40

45

Jan-20 Mar-20 May-20 Jul-20

Pri

ces

in IN

R/t

Qu

anti

ty in

(00

0’s)

t

Karnataka manganese ore auctions

Quantity Weighted Avg. Price (Mn 32-34%)

Source: SteelMint Research


Source: MSTC, Compiled and maintained by SteelMint

Source: MOIL, SteelMint, MSTC

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India: MOIL Manganese ore Prices

Tax Grade Sep-20 Aug-20 Jul-20

Basic Price, Exclusive of all Taxes

Lumps, Mn 37.5% ₹ 12,451 ₹ 11,319 ₹ 13,316

Lumps, Mn 44% ₹ 14,167 ₹ 12,879 ₹ 15,151

India: Manganese Ore Prices

Company/ Region

Tax Grade Aug-20 Jul-20 Jun-20

Ex-Balaghat, Private Miners

Basic Price, Exclusive of all

Taxes

Lumps, Mn 28-30%

₹ 5,100 ₹ 5,752 ₹ 6,656

Lumps, Mn 40-42%

₹ 10,680 ₹ 13,000 ₹ 15,660

Ex-BarbilPrices inclusive of

all taxes

Lumps, Mn 26-28%

₹ 8,250 ₹ 8,250 ₹ 10,250

Lumps, Mn 28-30%

₹ 9,250 ₹ 9,250 ₹ 12,250

Lumps, Mn 30-32%

₹ 10,250 ₹ 10,250 ₹ 13,350

Lumps, Mn 32-34%

₹ 11,250 ₹ 11,250 ₹ 14,750

Karntaka E-auctions

Exclusive of FDF, Royalty 5%, & GST

(5% on Ore auction price;

18% on Royalty, and Bulk permit processing fee)

Mn 24-26% ₹ 3,658 ₹ 3,988 ₹ 4,010

Mn 28-30% ₹ 6,530 ₹ 6,734 ₹ 6,050

Mn 30-32% ₹ 8,220 ₹ 8,185 ₹ 7,075

Mn 32-34% ₹ 9,342 ₹ 9,414 ₹ 8,024

Manganese Ore Statistics

Indian Manganese Ore Imports

Load Country

Jul-20 Jun-20 M-o-M Jan-Jul'20 Jan-Jul'19 Y-o-Y (%)

South Africa

1,55,592 64,720 140.4% 9,94,048 8,46,185 17.5%

Australia 42,236 3,372 1152.6% 3,13,158 2,04,206 53.4%

Gabon 35,862 51,405 -30.2% 3,75,071 2,09,205 79.3%

Brazil 2,559 8,213 -68.8% 28,062 1,58,709 -82.3%

Zambia 1445 552 161.8% 13,702 46,482 -70.5%

Others 667 429 55.5% 49,429 1,22,274 -59.6%

Grand Total

2,38,361 1,28,691 85.2% 17,73,470 15,87,061 11.7%

Indian Manganese ore imports surged in Jul-20

Indian manganese ore imports surged in July amidstlowering of prices of ores in June and increasingrequirement of higher graded ores in the country. Exportssignificantly increased from South Africa and Australia.Meanwhile, ores from Gabon and Brazil registered anegative growth of 30% and 69% m-o-m respectively.However, the increase in the procurement in the firstseven months of the year was up by 12% y-o-y.

Chinese Manganese ore increased by 35% m-o-m in Jul-20

Chinese manganese ore imports increased in July amidstavailability of lower cost ores and increased production inChina. Imports from South Africa and Australia, were thehighest with 39% and 18% shares in the total imports ofmanganese ore by China. However, in the total imports inthe first seven months of this year china declined by 16%y-o-y.

South African manganese ore exports up by 45%m-o-m in Jul’ 20

South African Manganese ore exports increasedsignificantly amid reduced prices and improved supply.Exports for China and India accounted for 76% and 10% ofthe total exports in Jul’ 20 respectively. Prices in Junereduced by 22% m-o-m and this encouraged the buyers tobook material and replenish their stocks.

Chinese Manganese ore inventory at all timehigh

Chinese manganese ore inventory at the ports are atrecord high due to continuous dumping of material andlow buying interest from the Chinese buyers. Meanwhile,due to reduced prices in July, major traders at the portstocked high amount of material which caused oversupplyin the market.


Chinese Manganese Ore Imports

Load Country

Jul-20 Jun-20 M-o-M Jan-Jul'20 Jan-Jul'19Y-o-Y (%)

South Africa

11,63,635 7,24,794 60.5% 63,38,458 73,18,416 -13.4%

Australia 5,25,111 5,19,209 1.1% 30,02,076 28,67,177 4.7%

Gabon 5,03,424 3,62,091 39.0% 25,20,017 16,67,230 51.1%

Brazil 2,39,569 1,88,411 27.2% 16,18,104 13,74,123 17.8%

Cote D Ivoire

1,43,453 1,30,497 9.9% 7,21,256 6,47,952 11.3%

Others 3,75,681 2,58,144 45.5% 15,68,686 49,21,902 -68.1%

Grand Total

29,50,873 21,83,146 35.2% 1,57,68,597 1,87,96,800 -16.1%

China: Manganese Ore inventory (first week of each month)

MonthChinese Port

InventoryTianjin Port

Qinzhou Port

Caofeidian Port

Jan-20 4.74 3.80 0.94 _ Feb-20 4.88 3.93 0.95 _ Mar-20 5.66 3.35 1.22 1.09 Apr-20 5.49 3.21 1.16 1.12 May-20 5.15 2.86 1.21 1.08 Jun-20 4.99 2.72 1.18 1.09 Jul-20 5.20 2.90 1.17 1.13

Aug-20 6.10 3.70 1.40 1.00

South African Manganese Ore Exports

Unload Country


China 16,02,392 12,65,283 26.6% 69,08,125 81,14,616 -14.9%

India 2,04,454 55,079 271.2% 8,68,049 10,13,716 -14.4%

Russia 71,049 211 33572.5% 1,34,536 4,21,039 -68.0%

Norway 50,000 NA 2,45,000 3,62,726 -32.5%

Japan 50,000 NA 1,98,645 3,56,263 -44.2%

Others 1,26,841 1,28,891 -1.6% 14,99,725 15,08,831 -0.6%

Grand Total

21,04,736 14,49,464 45.2% 98,54,080 1,17,77,191 -16.3%

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All quantity in tSource: Customs, compiled and maintained by SteelMint



All quantity in mn tSource: SteelMint Research

Manganese AlloysIndian Silico Manganese Prices

Domestic Prices/t

Location Grade Aug-20 Jul-20 Jun-20

Durgapur 60-14 ₹ 60,850 ₹ 60,100 ₹ 60,783

Raipur 60-14 ₹ 61,150 ₹ 61,300 ₹ 60,383

Export

FOB India60-14 $814 $800 $81365-16 $876 $885 $912

Indian Silico Manganese Prices remained stable

Indian Silico manganese prices inched up for 60-14 grade inboth domestic and exports due to shortage of material asmajor producers were either catering to the governmenttenders or were inclined towards exports. This created ashort term shortage in the domestic market for the 60-14grade material. However, the average prices for the monthremained stable.

Indian Ferro manganese Prices inched up by 3%m-o-m in Aug-20

Ferro manganese prices inched up in the export marketdue to short supply. There are not many producers of ferromanganese in the country, as many of them shifted tosilico manganese due to better demand. However, theprices remained stable for almost throughout the monthwith little deviations.

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Indian Ferro Manganese PricesDomestic Prices/t


Durgapur HC 70% ₹ 61,300 ₹ 59,750 ₹ 62,750

Raipur HC 70% ₹ 61,500 ₹ 60,875 ₹ 64,375

Export

FOB IndiaHC 70% $805 $818 $825HC 75% $868 $874 $895

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Ferro Silicon

Indian Ferro silicon prices escalated post Bhutan-Lockdown

Ferro silicon prices escalated unreasonably since Bhutan’slockdown due to Covid outbreak. The major reason being,that there are not many producers in Guwahati who areoperating, this creating a severe supply shrinkage in themarket for a short duration. Due to this, mostly the buyerswho were in urgent need of materials booked at higherprices.

Ferro Silicon Prices India Prices


Guwahati HC 70-75% ₹ 80,400 ₹ 73,167 ₹ 78,125

Bhutan HC 70-75% ₹ 74,600 ₹ 72,333 ₹ 77,250

Global

FOB Russia HC-65% $713 $750 $778FOB China HC-75% $1,013 $1,025 $1,010FOB Bhutan HC-70-75% $1,100 $1,100 $1,100


Chrome Ore

Chinese Imported South African chrome ore prices fellby 10%m-o-m in Aug’ 20

Chinese imported chrome ore prices fell amidst lowdemand in the domestic market. Also the tepiddemand of ferro chrome affected the chrome oreprices. However, in the later part of the month,miners were firm at their offers due to higher costincurred in transportation.

India: Chrome ore dispatches stable m-o-m in Aug’ 20

Indian chrome ore dispatches remain flat in Aug' 20 amid theongoing short supply of chrome ore. Misirlal mines remained thelargest seller of chrome ore as they have to vacate the minebefore mid-September. Meanwhile, OMC is still fulfilling their pastorders from the stock in hand. Jindal Stainless, Aarti Steel and VisaSteel remained the three biggest receivers of chrome ore in Aug'20.

India: Severe shortage of Chrome ore with smallerproducers of ferro chrome

Since the past three months, chrome ore mines have been goingthrough a lot of instability, which has been affecting theproduction levels. Three major chrome ore mines were auctionedand hence are not operating at present. The mining operationsmight take another two-three months to start at the very least.Meanwhile, the purely commercial miner - OMC has had a severecontraction in the production levels due to the lockdown imposedby the govt. The mining activity was severely hampered by thelabour shortage in line with strict government norms. Meanwhile,even post lockdown, mining was hit by monsoons and as majorityof mines are open cast in nature, they are flooded and are still notoperational as desired.

India: Chrome ore production lowest in 5 years in Jul’20

Indian Chrome ore production recorded a drop of 42% m-o-m inJul' 20. production of ores have been falling down continuouslyfirstly due to lockdown imposed by Indian government followed bythe severe labour shortage, and then the monsoons. This hasseverely impacted the chrome ore production in the country, mostof the smaller producers who were dependent on merchantmines, have either stopped production or are in a verge of it.


Chinese imported manganese ore prices (CNF China)


CONC 40-42% South Africa $133 $147 $167

CONC 46-48% Turkey $200 $207 $214

Odisha Chrome ore Dispatches in Aug'20 & Jul'20Seller Buyer Aug-20 Jul-20 m-o-m

Misirlal Mines

Visa Steel 25,914 14,968 73%Jindal Stainless 24,409 13,295 84%

Rashmi Cement

14,586 7,478 95%FACOR 7,785 10,396 -25%

Rohit Ferro Tech

7,364 6,081 21%Others 21,018 32,483 -35%

Misirlal Mines Total 101076 84701 19%

TATA Steel

Aarti Steels 30505 8318 267%Jindal Stainless 28778 25701 12%Tirumala Balaji

Alloys4848 6712 -28%

Anand Exports 4350 7090 -39%Jai Balaji

Industries3125 3376 -7%

Others 530 13,056 -96%TATA Steel Total 72,136 64,253 12%

IMFA IMFA 19,967 34,457 -42%FACOR FACOR 12,239 5,971 105%

OMC

Jindal Stainless 4,962 - NA

Jai Balaji Industries

1,663 - NA

ShyamMetalics &

Energy

1,263 - NA

Rashmi Cement

800 - NA

Indian East Coast Minerals

- 582 NA

Others 0 23,056 NA

O.M.C. Total 8,688 23,638 -63%Grand Total 2,14,106 2,13,021 1%

India: Chrome Ore Production

Mines Jul-20 Jun-20 M-o-MJan-

Jul'20Jan-

Jul'19Y-o-Y (%)

Tata Steel NA 5,39,349 11,69,399 -53.9%

O.M.C. 9,476 56,330 -83.2% 4,50,612 8,77,311 -48.6%

IMFA 46,116 60,269 -23.5% 3,22,127 3,11,574 3.4%Balasore

Alloys17,530 16,441 6.6% 1,35,391 1,49,535 -9.5%

FACOR 7,991 6,988 14.4% 89,594 80,603 11.2%

Others - - NA 80,178 4,77,698 -83.2%Grand Total

81,113 1,40,029 -42.1% 16,17,251 30,66,120 -47.3%


All quantity in tSource: SteelMint Research

All quantity in tSource: SteelMint Research

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Chrome Ore Statistics

China's chrome ore imports up by 44.2% m-o-min Jul’ 20

According to Customs, China imported 1.14 mn t of chromeore in Jul’ 20, up by 44.2% m-o-m. In July 2020, Chinaimported 73.5% of the total chrome ore from South Africa,up by 56.0% m-o-m.

China: Chrome Ore Imports

Load Country

Jul-20 Jun-20 M-o-MJan-

Jul'20Jan-

Jul'19Y-o-Y (%)

South Africa

8,37,409 5,36,774 56.0% 65,45,172 66,72,197 -1.9%

Zimbabwe 70,909 61,338 15.6% 2,94,289 4,00,792 -26.6%Turkey 59,293 62,631 -5.3% 3,32,456 5,94,592 -44.1%

Iran 39,440 16,848 134.1% 1,05,405 90,766 16.1%Pakistan 38,777 52,416 -26.0% 1,81,333 2,22,039 -18.3%Others 93346 60090 55.3% 5,38,390 7,54,620 -28.7%Grand Total

11,39,174 7,90,097 44.2% 79,97,045 87,35,006 -8.4%



South African Chrome Ore ExportsUnload Country


China 4,76,991 9,96,143 -52.1% 43,10,850 43,39,994 -0.7%Mozamb

-ique2,41,534 2,72,834 -11.5% 18,76,697 28,02,918 -33.0%

Hong Kong

35,652 12,385 187.9% 1,53,805 41,618 269.6%Indone-

sia23,021 42,357 -45.7% 1,63,291 2,51,592 -35.1%

United Arab

Emirates21,638 25,719 -15.9% 53,610 95,701 -44.0%

Others 45298 90438 -49.9% 483554 4,44,741 8.7%Grand Total

8,44,134 14,39,876 -41.4% 70,41,807 79,76,564 -11.7%

South African chrome ore exports significantlydown by 41% m-o-m in Jul’20

According to customs, the total export volume of SouthAfrica's chrome ore in July 2020 was 0.84 mn t, which isdown by 41% m-o-m in Jul’ 20. Among them, exports toChina in July were 476,991 t, accounting for 56.48% of totalexports.


Indian Ferro Chrome Prices

Domestic Prices


Jajpur, India HC 60% ₹ 62,500 ₹ 62,050 ₹ 65,313

China HC 52% ¥5,870 ¥5,900 ¥6,063

Exports

CNF South Korea

HC 60% ¢68/lb ¢71/lb ¢68/lb

CNF Japan HC 60% ¢69/lb ¢72/lb ¢69/lb

CNF China HC 60% ¢66/lb ¢69/lb ¢66/lb

Ferro Chrome


India: Ferro Chrome prices spiked at the end of themonth

Ferro chrome prices remained stable during the start of themonth, however, it escalated as the supply tightness of oreintensified. Prices of ferro chrome currently are about INR10,000/t higher than the average prices of Aug’20 amidstbullish sentiments.

China: Ferro chrome prices remain stable in Aug’ 20

Downstream alloy prices picked up partially due to limitedavailability in the retail market and partially due to lowoutput, import and high operating rate of stainless steel,propping up the demand. Ferro chrome plants in Hunan andGuizhou provinces are running at a loss as they are sufferingdue to the high chrome ore costs and low price of alloys inthe market, leading to curtailed production and ore stockbuild-up.

South African exports of ferro chrome remainedstable in Jul’20

According to customs data, the total export volume offerrochrome from South Africa in Jul’ 20 was 0.22mnt, adecrease 18% as compared to previous month, and a year-on-year decrease of 8.10% (July 2019). Among them,81,241t were exported to China, accounting for 37% of thetotal, a decrease of 53% from June.

Chinese Ferro Chrome imports down by 4.3%m-o-m in Jul’ 20Chinese ferro chrome imports sulked due to tepid demand in the domestic market. Meanwhile, imports from South Africa and Kazakhstan were down by 18% and 31% m-o-m. While, the exports were significantly higher from India in Jul’ 20 by about 90% m-o-m.

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South African Ferro Chrome Exports

Unload Country

Jul-20 Jun-20 M-o-M Jan-Jul' 20 Jan-Jul'19Y-o-Y (%)

China 81,241 1,71,022 -52.5% 6,69,467 720816 -7.1%

United Arab

Emirates62,140 44,880 38.5% 2,89,436 297335 -2.7%

Indonesia 35,002 NA 1,61,856 291398 -44.5%

Japan 15,127 6,588 129.6% 95,167 158018 -39.8%

Mozambique

8,431 8,385 0.5% 98,855 51914 90.4%

Others 17,407 37,101 -53.1% 4,13,521 6,47,250 -36.1%

Grand Total

2,19,348 2,67,976 -18.1% 17,28,302 21,66,731 -20.2%


Chinese Ferro Chrome Imports

Load Country

Jul-20 Jun-20 M-o-MJan-Jul'

20Jan-

Jul'19Y-o-Y (%)

South Africa

95,062 1,16,473 -18.4% 9,57,787 10,65,806 -10.1%

Kazakh-stan

51,253 74,101 -30.8% 4,69,611 4,07,455 15.3%

India 49,434 26,026 89.9% 1,86,978 2,42,491 -22.9%

Finland 13,000 791 1543.5% 43,563 14,999 190.4%

Zimba-bwe

6,903 7,743 -10.8% 58,624 71,125 -17.6%

Others 1396 1604 -13.0% 12504 62885 -80.1%

Grand Total

2,17,048 2,26,738 -4.3% 17,29,067 18,64,761 -7.3%



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ferro alloys monthly report aug-2020 - steelmint

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