India: Ferro silicon prices drop amid negotiations; Meghalaya plants resume ops

• Export inquiries from US increase, at higher offers
  
  
• Prices in China's domestic market, ZCE futures drop
  
  

Indian ferro silicon (70%) prices fell by INR 1,500/t ($18/t) w-o-w in comparison to the previous assessment on 14 October. Prices dropped as there was a bit of resistance towards higher offers which were being quoted earlier when Meghalaya plants were still under suspension. Thus, some buyer-seller negotiations led to the price drop.

As per BigMint's assessment on 21 October, post the INR 1,500/t ($18/t)-fall, ferro silicon prices touched INR 108,000/t ($1,285/t) exw-Guwahati. Prices in Bhutan inched down by INR 600/t ($7/t) w-o-w to INR 108,000/t ($1,285/t) exw. Last week, around 1,900 t of trades were reported to BigMint within the price bracket of INR 108,000-110,800/t ($1,285-1,318/t) exw.

Larger impact of Meghalaya plants resumption yet to be seen

Ferro silicon manufacturing units in Byrnihat, Meghalaya which were suspended since the first week of September re-opened last week. With their operations resuming recently, their material is yet to hit the market. However, the previous offers from the producers, being on the higher side, found limited acceptance and buyers negotiated hard.

A Bhutanese producer, who offered at INR 108,000/t ($1,285/t) exw, recently informed BigMint that, "There are currently no takers at these prices. As Diwali holidays are approaching, buyers are not interested unless they get a good price."

Rise in export inquiries

There was in increase in inquiries, but mainly from the US market, where offers went up by $60/t w-o-w to $1,350/t FOB Kolkata.

Drop in China's domestic, ZCE futures prices

Ferro silicon (Si:75%) prices in China declined by RMB 150/t ($21/t) w-o-w to RMB 6,660/t ($935/t) exw-Inner Mongolia. Prices of semi-coke, an essential raw material, continued to rise, impacting sellers' profit margins.

Additionally, ferro silicon futures for January 2025 delivery on the Zhengzhou Commodity Exchange (ZCE) fell by RMB 252/t ($35/t) w-o-w to RMB 6,366/t ($894/t) on 21 October.

Outlook

In the coming few days, BigMint estimates, prices will stay range-bound with some downward adjustments.

However, a significant rise in Chinese ferro silicon prices seems unlikely, but, with a gradual recovery in demand, prices may edge up in the long term. This too may influence Indian prices.