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India: Ferro silicon prices fall amid bid-offer disparity

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Ferro Silicon

BigMint Bureau

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18 Jun 2024, 17:55 IST

India: Ferro silicon prices fall amid bid-offer disparity

Few deals settle at lower rates

China's domestic, ZCE futures prices fall

Indian ferro silicon (70%) prices dropped by INR 1,500/t ($18/t) w-o-w as compared to the previous assessment on 10 June. As a result of bids and offers not matching, prices fell, making it difficult for Bhutan's new offers to stay in the market for long.

As per BigMint's assessment on 17 June, ferro silicon prices in India stood at INR 96,500/t ($1,156/t) exw-Guwahati. Bhutan's prices too dropped by INR 900/t ($11/t) w-o-w to INR 97,100/t ($1,163/t) exw. Approximately 2,700 t of trades in the INR 94,000-98,000/t ($1,126-1,174/t) exw price range were concluded last week in both the regions.

Factors affecting prices

Short-lived new offers: Bhutan's offers couldn't sustain in the market for a longer period of time after they were announced at INR 98,000/t ($1,126/t). Specifically in the north eastern region, 1,500 t of the 2,700 t of deals that were reported last week were completed within the price range of INR 94,000-95,000/t ($1,126-1,138/t) exw. So it had an impact on the prices. Additionally, some Bhutanese manufacturers were offering at INR 97,000/t ($1,162/t).

A market source from Bhutan recently informed BigMint, "Prices are currently both at INR 97,000/t ($1,162/t) and INR 98,000/t ($1,174/t) as plants are selling as per funds required. There will be no lower offers in the spot market from those who are booked for tender orders."

Price drop in China: Ferro silicon (Si:75%) prices in China dropped by RMB 195/t ($27/t) w-o-w to RMB 7,370/t ($1,016/t) exw-Inner Mongolia on 18 June. Offers increased earlier due to increased semi-coke and electricity prices but came down in the previous week due to reduced demand.

The Zhengzhou Commodity Exchange (ZCE) in China saw price fluctuations as well. On 17 June, prices for September 2024 delivery fell RMB 280/t ($39/t) w-o-w to RMB 7,022/t ($968/t).