India: Ferro silicon prices remain stable w-o-w amid moderate demand

Indian ferro silicon prices remained stable with marginal fluctuations w-o-w amid moderate demand. In the meantime, both buyers and sellers agreed on the prevailing prices.

According to SteelMint's assessment on 15 July 2022, most of the ferro silicon producers offered at around INR 147,000- 150,000/tonne (t) exw-Guwahati and Bhutan depending upon the quantity and selling pressures.

Factors keeping prices stable:

• Some producers were willing to sell material ahead of the monsoons, which traditionally disrupt supply. As a result, they sold at lower prices. Some producers offered at higher levels since they were either booked for the month or catering to government orders and were not in a hurry to sell. As a result, the average prices worked out to be similar to the previous week's.
  
  
• Furthermore, bulk orders remained subdued, which kept prices steady. The majority of buyers booked small quantities as they anticipated further falls amid a bearish ferro alloys market. SteelMint recorded around 1,000 tonnes of deals this week.
  
  
• Conversely, the stainless-steel market was bearish due to weak demand and a significant drop in nickel prices on the London Metals Exchange (LME). Currently, LME prices for nickel are below $19,000/t. But, production curtailments prevented smelters from reducing offers.
  
  

China market overview:
China's ferro silicon (75%) prices dropped by RMB 250/t ($37/t) w-o-w to RMB 8,450/t ($1,251/t) exw-Inner Mongolia. The bearish sentiment for ferro silicon in the domestic market continued and kept prices down.

In addition, Zhengzhou Commodity Exchange (ZCE) ferro silicon futures for September delivery fell by 11% today to close at RMB 7,194/t ($1,065/t) due to weak demand.

Outlook
Prices of ferro silicon are expected to remain stable with minor fluctuations in the coming week.