India: Ferro silicon prices remain stable w-o-w amid routine sales

• Bhutanese plants' licence renewals unlikely to impact India's supply
  
  
• 7 new plants rumoured to start operating in NE India, Bhutan
  
  

Indian ferro silicon (70%) prices stayed steady w-o-w, up marginally by INR 100/tonne (t) ($1/t) as compared to the previous assessment on 13 January. Prices were stable, as routine trades for around 1,400 t were recorded in both northeast India and Bhutan at INR 101,500-104,500/t ($1,173-1,208/t) exw.

As per BigMint's assessment on 20 January, ferro silicon prices in India were at INR 103,900/t ($1,201/t) exw-Guwahati. In Bhutan, tags fell by INR 600/t ($7/t) w-o-w to INR 103,200/t ($1,193/t) exw.

Market summary

Market remains stable: Of the deals captured, for 1,400 t, around 1,000 t were traded at INR 103,000-104,000/t ($1,191-1,202/t) exw. This largely shaped prices last week.

A seller from Bhutan recently informed BigMint, "Plants that have received orders from primary steel mills are not interested in bringing down their prices. However, those who are selling via distributors or traders are offering some discounts based on market trends."

Sources also informed BigMint that Bhutanese plants are gradually getting their BIS licences renewed, so there will be no adverse impact on material flow into India. Additionally, there are rumours that around 7 new plants in Bhutan and northeast India are expected to commence operations within the next 6 months.

Chinese prices hold firm: In China, domestic prices (Si:75%) were unchanged w-o-w at RMB 6,320/t ($864/t) exw-Inner Mongolia. End-users have already stocked up on inventories ahead of the Lunar New Year holidays, as during that period, transportation becomes difficult, and freights may rise. In the near term, some price adjustments may occur, but they are expected to be minor.

Prices on the Zhengzhou Commodity Exchange (ZCE) for March 2025 delivery inched up slightly by RMB 28/t ($4/t) w-o-w to RMB 6,396/t ($874/t) on 20 January.

Outlook

Going by market trends, presently, prices are being determined on a quantity basis, with lower rates being offered for bulk bookings. Accordingly, in the upcoming days, prices might fluctuate based on the frequency of bulk bookings. If there are more bulk bookings, then prices might decline, or else, they will likely be stable.