India: Ferro silicon prices inch up w-o-w

Indian ferro silicon prices inched up w-o-w to match Bhutan's offers despite moderate demand.

According to SteelMint's assessment on 20 January, some of Bhutan's producers offers hovered at around INR 125,000/t exw, while Guwahati-based producers prices ranged over INR 120,000-125,000/t exw.

This week, Bhutan's producers received adequate inquiries from the European market. This also influenced smelters to increase their offers.

Furthermore, the expectation that the BIS will not be extended further boosted prices.

In addition, majority of Bhutan's producer held their offers due to a few reasons. One is, the difference in energy trade prices with India. Two, low export opportunities, and lastly, high import bills. These factors will offer clarity on production costs.

Meanwhile, Guwahati buyers were trying to match Bhutan's offer despite moderate demand as most of the buyers only purchased hand-to-mouth, with demand down.

SteelMint recorded around 1,000t of deals this week in the domestic and export markets.

China market overview
Chinese ferro silicon (75%) prices remained stable at RMB 8,550/t exw-Inner Mongolia and exw-Quinghai for 4 consecutive weeks, as assessed on 19 January. Ferro silicon prices in the main production area remained relatively stable. Steel mills' bid relatively slow towards the end of the year, and deals were not finalized yet. Downstream demand was soft. In the short term, prices of ferro silicon are expected to be stable.

Outlook
Prices of ferro silicon are expected to remain stable in the coming weeks, as buyers are reluctant to accept higher prices.