India: Ferro silicon prices drop amid low inquiries, year-end obligations

• Buyers prefer to make need-based procurements
  
  
• Financial year end targets kept prices under pressure
  
  

Prices of Indian ferro silicon (70%) decreased by INR 900/tonne ($11/t) w-o-w in comparison to the previous assessment on 4 March. Prices dropped as demand remained limited and sellers wanted to clear their inventories as the financial year-end is round the corner.

Indian ferro silicon prices were at INR 102,100/t ($1,234/t) exw-Guwahati on 11 March, according to BigMint's assessment. The last week saw conclusion of around 250 t of deals in the INR 101,000-102,500/t ($1,220-1,238/t) price range. Prices in Bhutan remained largely stable with a slight drop of INR 102,800/t ($1,242/t) exw.

Market overview

Market challenges at fiscal year-end: Players in the market prepared to accomplish their respective targets as the conclusion of the fiscal year came near. Sellers wanted to sell material at prices below the ongoing rates in order to reduce their inventory levels. However, buyers did not want to purchase materials outside of their necessities. This, along with limited inquiries, pushed down prices.

"We're not firm on any prices these days and it all depends on plant to plant," a prominent producer from Bhutan told BigMint.

Global market perspective: In China, prices of ferro silicon (Si:75%) dropped by RMB 100/t ($14/t), to RMB 6,800/t ($948/t) exw-Inner Mongolia. Steel mills in the northern China were yet to determine their bidding prices.

However, reports indicated a slight uptick in prices in Japan and prices for long term contracts were yet to be decided.

Drop in ZCE future prices: Ferro silicon futures for the May 2024 delivery contract on China's Zhengzhou Commodity Exchange (ZCE) fell by RMB 110/t ($15/t) w-o-w and stood at RMB 6,502/t ($906/t) on 11 March.

Outlook

Considering the current market conditions, BigMint estimates additional price adjustments in the days ahead.