India: Ferro silicon prices rise amid tight supply; market awaits Bhutan's offers

• Operational suspensions continue at 3-4 Meghalaya plants
  
  
• China sees muted activity ahead of National Day holidays
  
  

Indian ferro silicon (70%) prices increased by INR 5,200/tonne (t) ($62/t) w-o-w in comparison to the previous assessment on 23 September. Prices increased amid limited supply in the market. Bhutan is expected to announce its offers for the month soon, which will likely determine the direction of domestic market trends.

As per BigMint's assessment on 30 September, ferro silicon prices in India were at INR 97,000/t ($1,157/t) exw-Guwahati. Meanwhile, prices in Bhutan inched up by INR 500/t ($6/t) w-o-w to INR 95,700/t ($1,142/t) exw. Deals of around 700 t were reported to BigMint within the price bracket of INR 93,000-98,000/t ($1,110-1,169/t) exw.

Market summary

Prolonged plant shutdown impacting supplies: It has been over a month since around 3-4 ferro silicon plants in Meghalaya were shut down due to pollution control violations. Initially, the impact was barely discernible, but as the days went by, other sellers increased their offers amid tightened supply. The timeline for reopening the plants still remains uncertain, and if the suspension continues, the market will be short of around 4,000-4,500 t of material.

Clarity awaited on Bhutan's offers: Bhutan is expected to announce offers for this month very soon, which may provide clarity regarding the direction of prices. A trader stated, "There is confusion in the market as people are making offers in a wide range of INR 94,000-100,000/t ($1,122-1,193/t) exw."

Another producer from Bhutan informed, "Currently, we are not offering material in the market. We are waiting to see how prices will be."

China's market scenario: Ferro silicon (Si:75%) prices in China saw a slight increase of RMB 100/t ($14/t) w-o-w to RMB 6,610/t ($940/t) exw-Inner Mongolia. The Chinese domestic market witnessed muted activity as the National Day holidays approached.

However, China's ferro silicon futures for January 2025 delivery on the Zhengzhou Commodity Exchange (ZCE) increased significantly by RMB 734/t ($104/t) w-o-w to RMB 6,794/t ($967/t) on 30 September.

Outlook

Bhutan's new prices will be released in the upcoming days, which will determine price trends in the days ahead. As per sources, prices are expected to increase m-o-m.