India: Ferro silicon prices inch up w-o-w amid tight supply; further rise likely

• 6 FeSI plants shut down in Meghalaya
  
  
• Bhutan's Feb offers drop $46/t m-o-m
  
  

Indian ferro silicon (70%) prices increased by INR 900/tonne (t) ($10/t) compared to the previous assessment on 3 February. Prices increased because most sellers in northeastern India had limited material available for sale, which encouraged them to raise offers. Additionally, in Bhutan, players were mostly in a wait-and-watch mode, as they wanted to observe in which direction prices would trend.

As per BigMint's assessment on 10 February, ferro silicon prices in India were at INR 102,600/t ($1,173/t) exw-Guwahati. Bhutan's prices too witnessed a slight uptick of INR 100/t ($1/t) w-o-w to INR 100,500/t ($1,149/t) exw. Last week, deals for around 100 t were concluded in northeastern India, within the price range of INR 104,000-104,500/t ($1,189-1,194/t) exw.

Market summary (4-10 February 2025)

Plants shut down in Meghalaya: Last week, three ferro silicon units in Meghalaya's Byrnihat industrial region were issued closure notices by the Meghalaya State Pollution Control Board due to violations of pollution control measures. Later on, three more plants were instructed to close their units, as per reliable sources.

Although the closed plants can sell their existing stock, the timeframe for operation resumption remains uncertain. If the suspension continues for a prolonged period, the ferro silicon supply chain will be impacted. This might push up prices further.

In reference to it, a Bhutanese seller commented, "I do not foresee a substantial price increase now. The plants that have been shut down are stated to have ample inventories, and prices likely will not increase till those get liquidated." However, some other sources expect sellers to lift offers in the near term.

Bhutan's m-o-m drop in offers: Bhutan's offers for February 2025 were announced at INR 100,000/t ($1,142/t) exw, a drop of INR 4,000/t ($46/t) m-o-m. Sources indicated that this drop was because of persistent bid-offer gaps in the previous month and limited demand.

During the month-end, market activities had slowed down, as people were awaiting Bhutan's offers for February 2025. Following the announcement, players were mostly cautious, focusing more on understanding the direction of pricing trends.

Chinese market scenario: Ferro silicon (Si:75%) prices in China stood at RMB 6,320/t ($865/t) exw-Inner Mongolia. Prices were relatively unchanged, as the market had just begun its operations following the Lunar New Year holidays.

Prices on the Zhengzhou Commodity Exchange (ZCE) for May 2025 delivery were at RMB 6,438/t ($881/t) on 10 February, a rise of RMB 120/t ($16/t) as compared to the prices on 5 February.

Outlook

Given the closure of certain Meghalaya-based plants and limited supply, prices may increase further in the days ahead.