India: Ferro silicon prices inch up to maintain parity with offers from Bhutan

Indian ferro silicon (70%) prices inched up by INR 900/t w-o-w in order to maintain price parity with Bhutan's new offers of INR 104,000/t exw for this month.

According to SteelMint's assessment on 6 October, Indian ferro silicon prices stood at INR 104,500/t exw-Guwahati. Deals for 1,000 t were concluded at INR 104,500-105,000/t. Prices in Bhutan decreased slightly by INR 500/t to INR 104,000/t exw. Around 2,000 t of deals were finalised in the price bracket of INR 103,000-104,000/t.

Market overview

Bhutan's new offers and stable demand: Demand for material has remained steady and some bulk bookings were concluded which are usually done at the beginning of the month. The majority of manufacturers in both Bhutan and the North East started quoting the same price as soon as the new Bhutanese proposal was released. However, Bhutan's offer decreased by INR 2,000/t m-o-m and mostly due to competitive prices offered by other producers, according to sources.

Muted stainless steel market, China holidays: Domestic stainless steel demand in India continued to be under pressure which made it difficult for market participants to trade in such an environment. As a result, consumers relied on imported material because it was cost effective. The market is anticipated to decline further amid constrained demand and downfall in futures prices. Also, the ongoing mid-autumn holidays have turned the Chinese market inactive.

Outlook

Considering the current market scenario, prices are likely to remain stable.