Bhutan: Ferro silicon prices edge down on lesser demand

Bhutan's ferro silicon prices have fallen as a result of the non-acceptance of the higher prices by the buyers. The lower prices are causing buyers to renegotiate their offers as they are unwilling to book materials at higher rates. Meanwhile, Indian producers are matching the lower prices.

According to SteelMint's assessment on 11 Dec'21, ferro silicon (70%) prices are hovering at around INR 180,000-180,400/tonnes(t) exw- from both Guwahati and Bhutan.

Why prices have edged down?

• Bhutanese prices have been steady at about INR 200,000/t exw for the last two weeks despite limited supplies, but producers have had little success in finding market acceptance. The result was enough inventory at the producers' plant. Ample inventory and low business activity prompted the ferro silicon sellers to reduce their offers from Bhutan. Even so, India is following suit in spite of good in-hand bookings for the month.
  
  
• The price of low ash metallurgical coke (LAM coke) in India (one of the raw materials used in ferro silicon's production) has declined by around 4-5% w-o-w amid bearish steel sentiments. The price of ferro silicon was then corrected as a consequence.
  
  
• China's ferro silicon (65-75%) prices fell marginally this week, by RMB 50-100/t ($8-16/t) to RMB 7,700-9,400/t ($1,209-1,476/t) exw- across provinces. Market confidence has been affected by the sharp decline in the ferro silicon bidding quantity of the HBIS Group for December.
  
  

Outlook
Ferro silicon prices are expected to remain under pressure on lower domestic demand and falling prices in China.