India: Ferro silicon prices rise to 2-month high amid reduced output from Meghalaya

• Bhutan's prices surge by INR 5,300/t

  
  
  

• ZCE futures register marginal drop

  
  
  

Indian ferro silicon (70%) prices saw an increase of INR 2,800/tonne (t) ($33/t) w-o-w as compared to the previous assessment on 16 September. Prices climbed up due to a supply crunch, brought on by the suspension of operations at a few Meghalaya plants. These units had been ordered to close at the beginning of September by the Meghalaya State Pollution Control Board (MSPCB) for violating environmental norms.

Ferro silicon in India stood at INR 91,800/t ($1,098/t) exw-Guwahati, as per BigMint's assessment on 23 September. Prices have risen to a two-month high, with these levels last seen at the end of July. In Bhutan, prices went up by INR 5,300/t ($63/t) w-o-w to INR 95,200/t ($1,139/t) exw. Deals of around 1,000 t were finalised last week in both regions within the price range of INR 90,500-97,000/t ($1,082-1,160/t) exw.

Weekly recap

Trades driving market trends: The timeline for the re-opening of the closed Meghalaya plants remains uncertain. Additionally, most sellers in the northeast have been supplying tender orders. Consequently, a supply crunch occurred in the spot market this week, leading to higher offers being quoted. Eventually, these elevated offers were accepted by the buyers, which set the trend for the market.

Chinese market holds steady: Ferro silicon (Si:75%) prices in China stood at RMB 6,510/t ($925/t) exw-Inner Mongolia. Prices were stable despite reports of production cuts and maintenance in some areas.

However, on 23 September, China's ferro silicon futures for January 2025 delivery on the Zhengzhou Commodity Exchange (ZCE) dropped slightly by RMB 90/t ($13/t) to RMB 6,060/t ($861/t) as compared to 18 September.

Outlook

It remains unclear as to when the shut Meghalaya plants will reopen. Following the hike in Bhutan's offers, we may see a rise in Guwahati's prices in the days ahead.