India: Ferro silicon prices drop after Bhutan players announce August offer

• Bhutan's offer fall by INR 4,000/t ($48/t) m-o-m
  
  
• ZCE futures prices rise w-o-w
  
  

Indian ferro silicon (70%) prices fell by INR 1,700/t ($20/t) w-o-w in comparison with the previous assessment on 29 July. Prices dropped as Bhutan's August offers were announced at INR 91,000/t ($1,085/t) exw, down by INR 4,000/t ($48/t) m-o-m.

As per BigMint's assessment on 5 August, ferro silicon prices in India were at INR 90,300/t ($1,076/t) exw-Guwahati. Bhutan's prices also went down by INR 1,700/t ($20/t) w-o-w to INR 91,000/t (1,085/t) exw. Around 3,400 t of deals were finalised in both the regions within the price bracket of INR 90,000-91,000/t ($1,073-1,085/t) exw.

Weekly market recap

Bhutan's offers shaping the market: As per the usual trend, Bhutan announced its offer to sell material at INR 91,000/t ($1,085/t) exw for August which was then adopted by sellers in north east as well. However, offers dropped m-o-m. Sources have indicated that primary reasons behind this drop was reduced demand and buyers' resistance towards higher prices.

Few major sellers in both the regions were offering INR 90,000/t ($1,073/t) as well. An Indian source told BigMint, "If the quantity is more than 100 t, then prices could go to INR 90,000/t ($1,073/t) levels."

The export market also seemed quiet over the last week and reports suggested that it might resume once European holidays are over.

China's market trends: Ferro silicon (Si:75%) prices in China stayed stable w-o-w at RMB 6,960/t ($974/t) exw-Inner Mongolia on 5 August. However, procurement of the material from steel mills stayed on the lower side and downstream demand also remained weak.

Although, ferro silicon futures for September delivery on China's Zhengzhou Commodity Exchange (ZCE) saw an increase by RMB 120/t ($17/t) w-o-w to RMB 6,922/t ($968/t) on 5 August.

Outlook

As the current market indications goes, prices are likely to undergo corrections in the days ahead.