India: Ferro silicon prices remain constant on less trade activities

Indian ferro silicon (70%) prices remained nearly stable with a marginal drop of INR 100/t w-o-w as compared to the previous assessment on 11 December.

As per SteelMint's assessment on 18 December, Indian ferro silicon prices stood at INR 101,700/t exw-Guwahati. Around 1,000 t of deals were concluded in the price bracket of INR 101,800-102,000/t. While, the prices in Bhutan remained unchanged and around 800 t deals happened. Trades in Bhutan were carried out at INR 101,000/t.

Limited trade activities and existing stocks have resulted in price stability, highlighted sources.

Market highlights over the week

Consistency in demand: The overall demand in both the regions was sturdy which kept the ferro silicon prices invariable. Furthermore, as per the reports, few plants in Bhutan underwent maintenance work, but this might not have affected the supply chain.

China's situation: Ferro silicon (Si:75%) prices in China were constant w-o-w at RMB 7,150/t ($1,008/t) exw-Inner Mongolia. Most factories focus on production to order, basically relying on orders from old customers, and the number of new orders is relatively small. Project construction in the north has been restricted, demand for steel has weakened, and de-stocking has slowed down.

However, ferro silicon futures for December 2023 delivery contract on China's Zhengzhou Commodity Exchange (ZCE) went up by RMB 58/t ($8/t) w-o-w to RMB 6,898/t ($973/t) on 18 December.

Outlook
Prices are expected to stay range-bound in the near term with usual fluctuations as they happen through the month.