BigMint is a Market Intelligence and Price Reporting firm that caters to the data and analytics requirements of businesses in the commodities sector. It publishes real time prices and information, which is impartial, independent and reliable, sourced from all industry interfaces – sellers, buyers, agents and traders. This data is filtered and passed through very stringent, calculative assessments before final prices are derived, thereby giving our clients accurate pricing.

Go to List

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

...

Ferro Silicon

BigMint Bureau

246 Reads

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.