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India: Ferro silicon prices drop by INR 1,200/t ($14/t) w-o-w amid bid-offer disparities

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Ferro Silicon

BigMint Bureau

104 Reads

10 Dec 2024, 18:29 IST

India: Ferro silicon prices drop by INR 1,200/t ($14/t) w-o-w amid bid-offer disparities

SAIL's tender closes at INR 109,032/t FOR

China's prices fall, ZCE futures down too

Indian ferro silicon (70%) prices dropped by INR 1,200/tonne (t) ($14/t) w-o-w as compared to the previous assessment on 2 December. Prices fell amid bid-offer disparities during negotiations between sellers and buyers, majorly in the northeastern region. However, this did not stop routine trades from being carried out.

As per BigMint's assessment on 9 December, ferro silicon prices in India were at INR 103,000/t ($1,214/t) exw-Guwahati. Bhutan's prices were stable, down marginally by INR 100/t ($1/t) w-o-w to INR 103,900/t ($1,225/t) exw. Trades of around 6,800 t were recorded by BigMint this week in both regions, within the price bracket of INR 102,000-107,000/t ($1,202-1,261/t) exw.

Market recap

Lower sustainability of Dec'24 offers: At the beginning of December, Bhutan's offers were announced at INR 104,000/t ($1,226/t) exw. This week, in Bhutan, prices were almost stable at these levels. However, in northeastern India, sellers were unable to sustain these levels, and prices declined. Bid-offer disparities during negotiations were one of the key reasons for this drop, and sellers opted to offload material to keep operations running.

Additionally, on 4 December, SAIL concluded its reverse auction to procure 20,000 t of ferro silicon (Si: 70% min, 10-100 mm) for its seven plants across India. The entire material was booked at around INR 109,032/t ($1,285/t) FOR, excluding taxes, as per officials.

The export market was dull this week. Sources informed that there were hardly any inquiries, and buyers' bids were not feasible for them.

Maintenance shutdowns, BIS renewal in Bhutan: A producer from Bhutan informed BigMint, "3-4 companies over here are planning to undertake maintenance shutdowns. We have tender orders to fulfil, so we are adjusting supplies to continue operations at a favourable pace."

The Bureau of Indian Standards (BIS) licence, which is essential to export material to India, is due to expire for many Bhutanese sellers. Commenting on this, a source stated, "We have submitted our application for it, and BIS will start reviewing Bhutan and SAARC countries from 15 December."

China's prices fall: In China, prices (Si:75%) fell slightly by RMB 30/t ($4/t) w-o-w to RMB 6,470/t ($893/t) exw-Inner Mongolia. Market sentiments remained pessimistic, with sellers reporting minimal new orders. Despite this, they made no move to cut production, and output remained strong, as existing orders needed to be fulfilled. A downtrend in the raw materials market also impacted production costs, especially for small and medium-sized producers.

Meanwhile, ferro silicon futures for February 2025 delivery on the Zhengzhou Commodity Exchange (ZCE) fell by RMB 178/t ($25/t) w-o-w to RMB 6,260/t ($863/t) on 9 December.