Prices for ferroalloys in the global market continue to show a downward trend amid weakening demand and a slight increase in production costs. According to analytics firm BigMint, spot prices for silicon manganese Mn 65% in China fell by $6 from April 14 to April 21, ranging from $799 to $836 per ton EXW. During the same period, futures contracts for this product on the Zhengzhou Commodity Exchange for May delivery decreased by $4, to $811 per ton. This indicates pessimistic sentiments among traders who do not expect a quick improvement in the situation in the short term.
This is reported by Бізнес • Медіа
Changes in Global Prices and Factors Affecting the Ferroalloy Market
The cost of silicon manganese Mn 53% in India decreased by $6 in the first half of April, reaching $985 per ton EXW in Durgapur as of April 21. Actual sales during this period were lower than the stated prices, as confirmed by BigMint data. For instance, a local plant in Durgapur recorded a deal for 210 tons of product at a price of $982 per ton EXW. At the same time, due to rising electricity tariffs in India in April, the production of ferroalloys is expected to increase in cost by approximately $58 per ton.
Additionally, prices for Australian manganese ore rose by 4%, or $5 per ton CIF to China, in the first half of April. Despite this, ferroalloy producers are currently unable to offset the increased costs by raising product prices for buyers. Attempts to raise export quotes by $3 to $945 per ton FOB in the first decade of April led to a decrease in inquiries from importers in Turkey, the UAE, and Japan.
At the same time, there is a looming threat from an anti-dumping investigation regarding the import of ferroalloys into the U.S., which was initiated in April by the International Trade Commission (ITC). The investigation concerns supplies from Brazil, Malaysia, and Kazakhstan, and it is likely that producers from these countries will redirect their products to other markets, creating additional pressure on global prices. As a result, the domestic market in India remains the main consumer of production, as export opportunities are limited.
The worsening export situation may contribute to the rising costs of ferroalloys in the second quarter due to increasing domestic steel prices. For instance, the price of rebar in India rose by $12 in the first half of April, reaching $668 per ton EXW in Mumbai. Metal traders expect further price increases in the coming weeks, which will impact the cost of industrial materials and encourage producers to adjust their pricing strategies.