India: Ferro silicon prices drop as Bhutan BIS renewal eases up supply shortage

• Renewed BIS licenses granted to some producers in Bhutan
  
  
• Buyers showed reduced interest to high offers
  
  

Indian ferro silicon (70%) prices saw a w-o-w decline of INR 2,600/t ($31/t) as compared to the previous assessment on 22 January. Prices decreased when few Bhutanese producers' Bureau of Indian Standards (BIS) licenses were renewed, which improved the supply dynamics in India.

As per SteelMint's assessment on 29 January, Indian ferro silicon prices stood at INR 108,900/t ($1,310/t) exw-Guwahati. Around 600 t of deals were concluded in the price bracket of INR 108,000-110,000/t ($1,299-1,323/t). Prices in Bhutan also experienced a w-o-w drop of INR 3,100/t ($37/t) and were standing at INR 109,900/t ($1,322/t) exw.

Weekly market observations

BIS renewal helps bridge the supply shortage gap: India, which is Bhutan's major export market for ferro silicon, had a scarcity of supply as imports were paused for a few weeks. And with the license renewal of four players, prices decreased as a result of the material being available in sufficient quantity and limited demand.

Global price dynamics: With a slight w-o-w decline of RMB 100/t ($14/t), ferro silicon (Si:75%) prices in China were RMB 7,050/t ($994/t) exw-Inner Mongolia. Production cuts were reported in few manufacturing units of Ningxia and with the upcoming new year holidays, demand also remained on the lower side.

Ferro silicon futures, however, increased by RMB 188/t ($27/t) w-o-w to RMB 6,822/t ($962/t) on 29 January for the March 2024 delivery contract on China's Zhengzhou Commodity Exchange (ZCE).

Outlook

Bhutan is expected to announce new prices for February in the coming days. Considering the present market conditions, prices are anticipated to stay within a certain range with minor fluctuations.