India: Ferro silicon prices fall amid bid-offer disparities
...
- Deals concluded at reduced rates
- China's HBIS cuts bid prices for July
Prices for Indian ferro silicon (70%) decreased by INR 2,200/t ($26/t) w-o-w from the previous assessment on 1 July 2024. Prices fell as there was resistance to new offers of INR 95,000/t ($1,138/t) exw for this month. Meanwhile, global prices are under pressure which is discouraging bulk bookings, further dampening demand.
Ferro silicon prices in India were INR 92,800/t ($1,112/t) exw-Guwahati on 8 July, according to BigMint's assessment. Prices in Bhutan remained stable, falling slightly by INR 300/t ($4/t) w-o-w to INR 94,700/t ($1,134/t) exw. Around 2,900 t of trades were heard in the price range of INR 92,000-95,000/t ($1,102-1,138/t) exw.
Market summary
New offers far from sustainable: Bhutan had previously announced offers this month of INR 95,000/t ($1,138/t) exw. Most of the deals last week were carried out at similar price levels. However, in the north-eastern region, a few bulk deals were concluded at lower rates which influenced the market. According to sources, buyers purchased material only when absolutely necessary and producers' offers were reduced to entice buyers.
"Good quality material with advance payment terms may be procured at lower rates and it mostly depends on the negotiating skills with the plants," a manufacturer from Bhutan told BigMint.
China's market dynamics: Prices for ferro silicon (Si:75%) decreased by RMB 50/t ($7/t) w-o-w to RMB 7,180/t ($987/t) exw-Inner Mongolia on 8 July.
Ferro silicon bidding prices for July were also reduced by the HBIS group by RMB 550/t ($76/t) m-o-m to RMB 7,000/t ($963/t). On the other hand, bidding volumes increased by 429 t m-o-m to 2,629 t.
On China's Zhengzhou Commodity Exchange (ZCE), ferro silicon futures for September delivery fell by RMB 154/t ($21/t) w-o-w to RMB 6,818/t ($938/t) on 8 July.
Outlook
In view of the current market conditions, prices may witness further downward adjustments in the coming days.
