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India: Ferro silicon prices drop as Bhutanese suppliers reduce offers

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Ferro Silicon

BigMint Bureau

255 Reads

5 Mar 2024, 17:24 IST

India: Ferro silicon prices drop as Bhutanese suppliers reduce offers

New offers from Bhutan down INR 4,000/t m-o-m

Slight drop observed in ZCE futures prices

Prices of ferro silicon (Si:70%) in India decreased by INR 2,750/t ($33/t) w-o-w from the previous evaluation on 26 February. Due to lesser demand and financial year-end requirements to fulfill targets, Bhutan's new offer stayed on the lower side and prices decreased.

Bhutan cuts prices on weak demand

A significant manufacturer from Bhutan disclosed rates for March that were reduced by INR 4,000/t ($48/t) m-o-m to INR 103,000/t ($1,242/t) exw. The primary cause of the price decline, according to sources, was the decreased demand and the need to fulfill financial year-end targets. Existing inventories also continued to keep prices under pressure, sources informed.

Market dynamics, trades

According to BigMint's assessment on 4 March, India ferro silicon prices were INR 103,000/t ($1,242/t) exw-Guwahati. Bhutan's offers also remained at similar levels. At newly released prices, around 300 t of deals were finalised in both the regions. Spot trading volume remained limited because some suppliers were catering to bulk orders from major Indian steel producers.

A market participant informed BigMint, "It is being heard that steel mills are exploring alternatives, and pig iron is meeting those needs with its desired silicon content."

Also as per sources, there was an increase in inquiries in the export market. However, Malaysia mostly served the European market, and the Middle East region imported goods from China.

China prices decrease

The price of ferro silicon (Si:75%) in China decreased by RMB 100/t ($14/t) w-o-w to RMB 6,900/t ($958/t) exw-Inner Mongolia. Sellers were unwilling to sell at lower prices, and steel factories began to inquire about the material. However, the downstream demand will determine the course of prices in the coming days.

Minor decline in ZCE futures prices

Ferro silicon futures for the May 2024 delivery contract on China's Zhengzhou Commodity Exchange (ZCE) inched down by RMB 70/t ($10/t) to RMB 6,612/t ($918/t) on 4 March as compared to prices on 26 February.

Outlook

Reports indicated that discounts were being offered for bulk quantities. However, as the new prices have just been announced, so prices are expected to hold steady in the coming days, with minor correction.