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India: Ferro silicon prices descend to 3-year low on sluggish demand

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Ferro Silicon

BigMint Bureau

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16 Apr 2024, 17:30 IST

India: Ferro silicon prices descend to 3-year low on sluggish demand

Export prices maintain stability

HBIS tender prices fall by RMB 150/t ($21/t) m-o-m

Prices for Indian ferro silicon (70%) declined by INR 2,000/t ($24/t) w-o-w as compared to the previous assessment on 8 April, reaching a 3-year low. Bid-offer discrepancies and muted demand both contributed to the price drop.

Based on BigMint's assessment, ferro silicon prices in India were INR 98,000/t ($1,174/t) exw-Guwahati on 15 April. Prices in Bhutan also fell by INR 1,800/t ($22/t) w-o-w to INR 98,200/t ($1,176/t) exw. In both the regions, around 2,300 t of trades in the range of INR 95,000-100,000/t ($1,138-1,198/t) were completed last week.

Weekly market summary

Weak demand prevails in negotiations: Both in Guwahati and Bhutan, the offers were initially set at INR 100,000/t ($1,198/t) exw. However, because of the decreased demand and the differences in bid and offer, the prices decreased in both the regions. Export prices, meanwhile, held steady w-o-w at $1,300/t FOB Kolkata.

"Prices are expected to go down even further and it won't be feasible for us to operate and sell at those prices," a Guwahati producer told BigMint in reference to his material being offered at below market costs.

Global market trends: In China, the price of ferro silicon (Si:75%) increased by RMB 100/t ($14/t) w-o-w to RMB 6,500/t ($898/t) exw-Inner Mongolia. The procurement of material by steel mills was done with caution. The April tender prices (Si:72%) for Hebei Iron and Steel (HBIS) group were also confirmed, with a decrease of RMB 150/t ($21/t) m-o-m to RMB 6,600/t ($912/t) DAP. Moreover, the bidding volume also decreased m-o-m to 1,516 t.

Ferro silicon futures for the May 2024 delivery contract on China's Zhengzhou Commodity Exchange (ZCE) remained steady w-o-w, rising slightly by RMB 38/t ($5/t) to RMB 6,580/t ($909/t) on 15 April.