India: Ferro silicon prices drop w-o-w amid limited inquiries, bid-offer gaps

• Indian FeSi suppliers await Bhutan's Feb offers
  
  
• BIS licences renewed for most plants in Bhutan
  
  

Indian ferro silicon (70%) prices dropped by INR 1,800/tonne (t) ($21/t) w-o-w as compared to the previous assessment on 20 January. Prices fell amid muted trades, driven by limited inquiries and bid-offer gaps.

Ferro silicon prices in India were at INR 102,100/t ($1,180/t) exw-Guwahati, as per BigMint's assessment on 27 January. In Bhutan as well, prices declined by INR 1,100/t ($13/t) w-o-w to INR 102,100/t ($1,180/t) exw.

Market highlights (21-27 January 2025)

Prices fall amid limited inquiries: The market remained largely silent last week, reflected by the limited trades observed. Inquiries were minimal, and bid-offer disparities led to slow transaction activity and, ultimately, lower prices w-o-w. Additionally, suppliers also did not try to push material, as they waited for Bhutan's price announcement for next month. These factors contributed to a quiet market over this period.

A prominent seller from Bhutan recently informed BigMint, "We have orders in hand at INR 104,000/t ($1,202/t) exw, and we are dispatching the same. Hence, we are not offering any material in the market at present. Additionally, on the whole, the market is dull."

Notably, some plants in both northeast India and Bhutan were shut, while some others were occupied with fulfilling tender orders. However, this did not have much of an impact on material supply, as most Bhutanese plants have been able to get their BIS licences renewed.

On the export front, sources indicated that the market was slow, and prices were largely steady w-o-w at $1,253/t FOB Kolkata.

Global markets remain steady: Ferro silicon (Si:75%) prices in China were steady w-o-w at RMB 6,320/t ($872/t) exw-Inner Mongolia. Limited trading activities were observed in the domestic market, as both buyers and sellers had finalised transactions before the upcoming Lunar New Year (LNY) holidays.

Sources also informed that in Europe, demand did not show signs of any major improvement, and there were challenges in closing long-term contract negotiations.

Outlook

In the coming days, prices might correct to a certain degree, given the current market trends. Bhutan's offers for February will help provide further clarity on prices.