India: Ferro silicon prices edge down as buyers resist higher prices

India's ferro silicon prices dropped marginally due to weak domestic demand with small-time buyers reluctant to book material at higher prices.

Meanwhile, participants (buyers/sellers) awaited the major tenders, to get a clearer price direction.

According to SteelMint's assessment on 30 June 2022, most of the ferro silicon producers offered at around INR 146,500/t exw- from Guwahati and Bhutan.

Market highlights:

Smelters received limited inquiries. Many buyers were in wait-and-watch mode, awaiting the new price announcements for July dispatches.

Meanwhile, some major tenders are to be concluded in the coming days. Hence, most market participants are looking forward to these to get a clearer market direction.

In addition, most of the major buyers had already purchased material, while smaller buyers were not ready to book at higher prices. Consequently, sellers (mainly traders/ stockists) had to reduce their offers to get some bookings done amid limited demand.

Furthermore, stainless steel prices also dropped w-o-w due to decrease in LME nickel prices. Weak demand also reduced the prices of 316 grade hot rolled coils by 3,000/t w-o-w to INR 345,000/t exw-Mumbai, as assessed on 28 June. This also impacted ferro silicon prices.

China market view
China's ferro silicon spot prices (75%) reduced by RMB 100/t w-o-w to RMB 9,000/t exw-Inner Mongolia. Overall consumption was weak.

China's ferro silicon futures were almost stable today on a weekly basis. Zhengzhou Commodity Exchange (ZCE) ferro silicon settled prices for September delivery were at RMB 8,260/t. It is expected that ferro silicon prices will remain stable or decline slightly in the short term.

Outlook
Ferro silicon prices are expected to remain firm amid limited supply. Market participants are awaiting the release of July prices by Bhutanese mills, which are expected to be announced in a day or two.