India: Ferro silicon prices fluctuate amid supply-demand mismatch

• Upcoming elections instil uncertainty in market
  
  
• ZCE futures prices witness slight decline
  
  

Prices of ferro silicon (70%) in India decreased by INR 400/t ($5/t) w-o-w in comparison to the previous evaluation on 11 March. Prices fluctuated a bit, although supply and demand were both at reasonable levels and there was enough material in the market.

According to BigMint's assessment on 18 March, the price of ferro silicon in India was INR 101,700/t ($1,226/t) exw-Guwahati. In Bhutan, prices decreased by INR 800/t ($10/t) w-o-w and were at INR 102,000/t ($1,230/t) exw. Last week, around 1,500 t of trades were completed in both regions in the INR 101,000-102,500/t ($1,218-1,236/t) price range.

Weekly market movements

Price adjustments and political uncertainty: Prices in India usually get revised during the month in accordance with market conditions. Even though the market began trading at INR 103,000/t ($1,242/t) exw, prices in Bhutan and India both decreased. Prices decreased as a result of a slight slowdown in demand and ample supply of material.

Additionally, there is uncertainty in the political and economic landscape because India's elections are coming up. This has made market players hesitant to make investments, expand, or increase production.

China's ferro silicon prices fall: Prices of ferro silicon (Si:75%) in China decreased by RMB 100/t ($14/t) w-o-w basis to RMB 6,700/t ($931/t) exw-Inner Mongolia. Reports stated that the Ningxia region was seeing production cuts.

The ferro silicon purchase price for March deliveries was also finalised by Hebei Iron and Steel (HBIS) group at RMB 6,750/t ($938/t). Prices decreased m-o-m by RMB 266/t ($37/t). Additionally, the volume of bids decreased by 9,000 t m-o-m to 14,500 t.

Minor decline in ZCE futures prices: Ferro silicon futures on China's Zhengzhou Commodity Exchange (ZCE) for May 2024 delivery contract decreased slightly by RMB 22/t ($3/t) w-o-w and closed at RMB 6,480/t ($900/t) on 18 March.

Outlook

Considering current market conditions, BigMint expects prices to undergo further correction in the coming days.