India: Ferro silicon prices remain steady amid consistent demand and trading activities

Indian ferro silicon (70%) prices remained stable with a slight decline of INR 400/t w-o-w. Prices remained steady by the continuation of normal demand and routine trading activities.

As per SteelMint's assessment on 13 October, Indian ferro silicon prices stood at INR 104,100/t exw-Guwahati. Deals were finalized in the price bracket of INR 104,000-104,500/t. Prices in Bhutan experienced a marginal decrease of INR 200/t w-o-w. Around 1,200 t of bookings were made in Bhutan in INR 103,000-104,000/t price range.

Elements influencing prices

Firm demand and regular trades: Following the same pattern as the previous week, material was booked in sufficient quantity by the buyers. Producers were thus, able to maintain pricing with which they opened new month's bookings and only minor fluctuations occurred. Some also reported that their material was sold out for this month. According to sources, the export market also improved as a result of the rise in inquiries. Overall, both in north east and in Bhutan, the trading environment remained general.

Domestic stainless steel market: Due to declining future prices and raw material costs, stainless steel demand in India remained muted. As a result, participants in this sector only purchased ferro silicon when necessary.

Global perspective: Ferro silicon (75%) prices in China fell by RMB 100/t ($14/t) to stand at RMB 7,550/t ($1,033/t) on 13 October. With an average daily output of 15,718 t, an increase of 505 t from the previous period, production remained at a higher level. However, with the oversupply of material in the market, prices fell down.

Outlook

Given the prevailing market sentiments, stability in prices is expected with slight variations. Additionally, there could be power supply shortage in Bhutan in the coming months, potentially contributing to price increase.