India: Ferro silicon prices rise on Meghalaya production cuts, higher Bhutan offers

• Supply remain stable despite plant shutdowns in Meghalaya
  
  
• Chinese prices register slight drop amid sluggish demand
  
  

Indian ferro silicon (70%) prices rose by INR 1,450/tonne (t) ($17/t) w-o-w as compared to the previous assessment on 2 September. Prices increased as producers in the Northeast raised their offers to match Bhutan's ones, which were initially announced at INR 88,000/t ($1,048/t) for the month.

As per BigMint's assessment on 9 September, ferro silicon prices in India were INR 88,100/t ($1,049/t) exw-Guwahati. Prices in Bhutan stood at INR 88,500/t ($1,054/t) exw, following an increase of INR 500/t ($6/t) w-o-w. This week, deals of around 1,000 t were reported to BigMint in both regions, within the price bracket of INR 85,500-90,000/t ($1,018-1,072/t) exw.

Weekly market recap

Bhutan's prices shape Indian trends: As per convention, new prices are announced from Bhutan at the beginning of each month, and Indian producers, majorly located in the Northeast, start to follow these prices. As a result, most Indian offers were in alignment with Bhutan's offers, at INR 88,000/t ($1,048/t) exw.

However, in Bhutan, offers witnessed an increase in the latter part of this week. A major Bhutanese producer informed BigMint, "We are pushing offers to up to INR 90,000/t ($1,072/t) exw on a 'take or leave' policy, as we already have orders to complete."

Meghalaya plants see production suspensions: On 3 September, the Meghalaya State Pollution Control Board (MSPCB) issued closure notices to around 6 industrial units in the Brynihat region for non-compliance with environmental regulations. These plants will need to remain closed until the prescribed standards are met. Of the 6 closed units, 4 produce ferro silicon, with a combined monthly capacity of around 4,000 t.

As per reliable sources, some of the closed plants have stocks lying with them, so there wasn't any immediate impact on the supply chain. However, if the suspensions persist for a longer period, then they might impact material availability.

In reference to this, a market player informed BigMint a few days back, "The plant closures will have no impact, as demand is limited, and most bookings were done prior to the closure. Additionally, plants in Arunachal Pradesh are operating in full swing,"

China's prices edge down: Ferro silicon (Si:75%) prices in China inched down by RMB 50/t ($7/t) w-o-w to RMB 6,580/t ($924/t) exw-Inner Mongolia. The overall market remained sluggish, but with ample supplies, there was minimal influence on prices.

Additionally, ferro silicon futures for October delivery on China's Zhengzhou Commodity Exchange (ZCE) also dropped by RMB 182/t ($26/t) w-o-w to RMB 6,020/t ($846/t) on 9 September.

Outlook

There has been an increase in offers lately, so in the coming days, prices may stay range-bound or experience an uptick.