India: Ferro silicon prices edge up following hike in offers by Bhutanese suppliers

• Bhutan's offers up m-o-m by INR 11,000/t in Nov'24
  
  
• Uncertainty persists for producers in Guwahati
  
  

Indian ferro silicon (70%) prices rose this week, with a hike of INR 1,890/tonne (t) ($22/t) observed compared to the previous assessment on 28 October. Bhutanese suppliers opened their offers at INR 110,000/t ($1,308/t) for November 2024, which may well be driving prices this week.

Ferro silicon prices in India were assessed at INR 109,930/t ($1,307/t) exw-Guwahati, up by INR 1,780/t ($21/t) as per BigMint's assessment on 4 November. Meanwhile, Bhutan's offers also increased by INR 2,000/t ($24/t) w-o-w to INR 110,000/t ($1,308/t) exw.

Weekly market update

Power tariff hike in Guwahati: With the new rates set at INR 6.47/kVah, ferro silicon prices in the region have risen. However, key industry players report that there is some element of resistance to these elevated prices. The prevailing uncertainty necessitates close monitoring of significant developments in both domestic and global markets, as any shifts could influence pricing strategies and demand dynamics going forward. Stakeholders remain vigilant in this fluctuating economic landscape.

New offers from Bhutan: Recently, Bhutan announced prices at INR 110,000/t, leading to a notable increase in regional ferro silicon prices. Further, reports suggest that plants in Bhutan are planning scheduled maintenance activities soon, which may significantly influence supply levels and price dynamics in the near term.

New inquiries from Europe are anticipated as companies seek to fulfill stock requirements ahead of the winter holidays.

Stable prices in China: Ferro silicon (Si: 75%) prices in China recorded stable w-o-w at RMB 6,685/t ($941/t) exw-Inner Mongolia. Manufacturers' profits were minimised due to maintenance and production cuts compounded by overall high supply in the market.

However, ferro silicon futures for January 2025 delivery on the Zhengzhou Commodity Exchange (ZCE) inched down by RMB 156/t ($22/t) w-o-w to RMB 6,436/t ($906/t) on 5 November.

Outlook

Ferro silicon prices are anticipated to stay within the current range, experiencing minor fluctuations. However, if prices decrease further amid prevailing uncertain market conditions, manufacturers may face significant losses, prompting caution as regards utilisation levels and pricing strategies.