India: Ferro silicon prices inch down amid static market conditions

• Marginal drop in China's domestic prices, ZCE futures
  
  
• New offers from Bhutan anticipated next week
  
  

Indian ferro silicon (70%) prices decreased slightly by INR 500/t ($6/t) w-o-w compared to the previous assessment on 15 July. No significant changes were observed in the market last week.

As per BigMint's assessment on 22 July, ferro silicon prices in India were INR 92,000/t ($1,099/t) exw-Guwahati. Prices in Bhutan also fell slightly by INR 600/t ($7/t) w-o-w to INR 92,700/t ($1,108/t) exw. However, a few producers from the Southeastern region offered prices lower than the assessment amid panic selling. Last week, around 1,100 t of deals were finalised within the price range of INR 92,500-93,500/t ($1,105-1,117/t) exw.

Market dynamics

Disparities in bids and offers: The earlier-reported variations in bids and offers continued to weigh on the ferro silicon market although no significant drop in trade prices have been reported.

A manufacturer from Meghalaya informed BigMint, "We are currently offering at INR 88,000/t ($1,051/t) but getting no buyers. We have reduced offer prices as operational activities have to be carried out."

Another producer told BigMint, "The market currently seems to have bottomed out and might just recover a bit in a few days."

China's market trends: Ferro silicon (Si:75%) prices in China stayed largely stable with a marginal drop of RMB 80/t ($11/t) w-o-w to RMB 7,000/t ($962/t) exw-Inner Mongolia. Not much transactions were carried out in the market due to the upcoming off season for industrial consumption.

Ferro silicon futures for September delivery also fell by RMB 34/t ($5/t) w-o-w to RMB 6,668/t ($917/t) on 22 July.

Outlook

In the near term, BigMint believes prices will stay rangebound with slight variations. Meanwhile, the market is awaiting a new round of offers for August which will bring more clarity on price trends.