India: Ferro silicon prices inch up to match Bhutan offers

Indian ferro silicon prices have inched up w-o-w to match Bhutan's offers. However, prices have been range-bound in China, with marginal fluctuations. This resulted in Bhutan's offers remaining stable compared to last week.

According to SteelMint's assessment on 20 Jan'22, prices of ferro silicon (70%) rose by INR 1,300 / tonnes (t) w-o-w to INR 159,300 / t exw-Guwahati, while Bhutan is offering at INR 160,000/t exw.

The producers will have limited supplies this month as most of the major smelters are sold out while others are busy catering through tenders. This trend also supported Guwahati-based producers in raising their prices.

Additionally, met coke prices have risen 22% in the eastern region to INR 48,000/t from INR 39,500/t at the beginning of the month. This also prompted ferro silicon producers to increase their offers.

In contrast, small steelmakers are avoiding booking ferro silicon at higher prices pressured by lower steel prices owing to moderate trade and demand.

China's market review
Domestic ferro silicon prices recovered this week. An ignition of ferro silicon ore furnaces in the north-west region was reported at the beginning of this week. A fall was seen both in the spot and futures markets, but then a quick rise followed.

Moreover, the market is relatively firm in both spot and futures. The supply of spot quantity in the market is somewhat tight at the moment, and the actual transaction price is still being discussed. Many manufacturers are still placing orders for production and the supply of spot quantity in the market is still quite tight.

Outlook
Prices of ferro silicon are expected to remain stable in the coming weeks, as buyers are reluctant to accept higher prices. If coke or steel prices improve in the near future, the outlook will turn positive.