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India: Ferro silicon prices drop as Bhutan lowers offers for Sep'24

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Ferro Silicon

BigMint Bureau

223 Reads

3 Sep 2024, 18:16 IST

India: Ferro silicon prices drop as Bhutan lowers offers for Sep'24

Bhutan's Sep offers drop by INR 3,000/t ($36/t) m-o-m

China's market steady, drop in ZCE futures prices

Indian ferro silicon (70%) prices saw a drop of INR 1,450/t ($17/t) w-o-w as compared to the previous assessment on 26 August. Bid-offer disparity continued to affect the market, resulting in deals concluded at lower prices.

Ferro silicon prices in India were at INR 86,650/t ($1,032/t) exw-Guwahati, as per BigMint's assessment on 2 September. Bhutan's offer for this month was announced at INR 88,000/t ($1,048/t) exw, so prices stayed at those levels. Last week, deals of around 2,300 t were finalised in both regions within the price bracket of INR 85,000-88,000/t ($1,013-1,048/t) exw.

Market summary

Deals shaping market trends: Earlier, a few offers were reported on the lower side, majorly in the north-eastern regions. However, last week, a major stainless steel producer booked around 1,700 t of material at around INR 85,000/t ($1,012/t) exw. Subsequently, prices stayed within this range.

After Bhutan's announcement of a new price for September in the latter part of last week, some producers increased their offers, but deals have not yet been concluded at those prices. A producer from the northeast was quoted as saying to BigMint, "As the new prices have just been announced, the market here will take some time to adapt to it."

Bhutan's prices drop m-o-m: A decline of INR 3,000/t ($36/t) m-o-m to INR 88,000/t ($1,048/t) exw was seen in Bhutan's offer for this month. Reliable sources indicated that the drop in prices was due to less demand and to align with offers from Indian producers.

China's prices remain stable: Ferro silicon (Si:75%) prices in China stayed unchanged w-o-w at RMB 6,630/t ($932/t) exw-Inner Mongolia. Production cuts and maintenance were still underway in some regions, but with sufficient supplies, prices were unaffected.

However, ferro silicon futures for October delivery on China's Zhengzhou Commodity Exchange (ZCE) dropped by RMB 160/t ($22/t) w-o-w to RMB 6,232/t ($876/t) on 2 September.

Outlook

In the next few days, BigMint estimates that Bhutan's prices will hold steady. However, Guwahati's prices may rise, to be in sync with Bhutan's offers.