India: Ferro silicon prices dip following Bhutan's April offer

• Bhutan sets April's offer at INR 100,000/t
  
  
• Rise in export inquiries
  
  

Prices of Indian ferro silicon (70%) decreased by INR 500/t ($6/t) w-o-w as compared to the previous assessment on 1 April. Prices fell as new offer was revealed from Bhutan and as the norm goes, Indian producers started to sell material at those prices.

Ferro silicon prices in India were at INR 100,000/t ($1,202/t) exw-Guwahati on 8 April, according to BigMint's assessment. Bhutan's prices stayed the same as well. Around 2,800 t of deals in the range of INR 97,000-100,000/t ($1,166-1,202/t) were closed in both regions in the previous week.

Market activity during the week

Bhutan's April prices, export trends: Bhutan announced prices for April at INR 100,000/t ($1,202/t) exw. Thus, prices stayed similar for the entire week. However, according to insiders, while general costs stayed the same, discounts were given for a few bulk bookings.

"We're getting enquiries from the US and it seems that they are looking for alternate sources to Malaysia as anti-dumping investigations have been initiated against them," a Bhutanese producer was quoted as saying in reference to the export market.

Global scenario: Ferro silicon (Si:75%) prices in China currently stand at RMB 6,500/t ($899/t) exw-Inner Mongolia. Reports also indicated a fall in semi-coke prices and a decline in demand in China and Japan. Also, there may be fewer tenders this month because Japanese stainless steel factories had enough inventories.

On China's Zhengzhou Commodity Exchange (ZCE), ferro silicon futures for May 2024 delivery contract was steady w-o-w, with a minor decrease of RMB 60/t ($8/t) to RMB 6,542/t ($904/t) on 8 April.

Outlook

BigMint estimates prices to hold steady in the near term. However, as the month progresses, there is a possibility of further adjustments in the pricing.