India: Ferro silicon prices stable amid regular market operations

• Hike in ocean freight charges affects exports
  
  
• Slight increase in ZCE futures prices
  
  

Indian ferro silicon (70%) prices stayed steady w-o-w as compared to the previous assessment on 22 July. Prices remained unchanged as regular market operations were seen throughout the week without any significant changes.

Ferro silicon prices in India were INR 92,000/t ($1,099/t) exw-Guwahati, as per BigMint's assessment on 29 July. Prices in Bhutan also didn't change w-o-w, standing at INR 92,700/t ($1,107/t) exw. Last week, around 1,100 t of trades were reported to BigMint in the north eastern region within the price bracket of INR 92,000-94,300/t ($1,099-1,126/t) exw.

Market activity over the week

Stable market operations; new prices awaited: Usual trades were carried out in the market last week and as the month was about to conclude, majority of the market players awaited new prices from Bhutan as well. However, some indicated that it may drop m-o-m.

An Indian producer told BigMint, "Market seems to be very dicey right now however in my opinion, prices should stay around current levels."

Export prices too remained stable at $1,200/t FOB Kolkata but demand remained weaker. In reference to it, a Bhutanese exporter told BigMint, "The recent hike in ocean freight has destroyed the demand in market. Buyers are not able to match the price due to unprecedented hike in freight charges."

Trends in Chinese market: Ferro silicon (Si:75%) prices in China experienced a slight w-o-w drop of RMB 40/t ($6/t) to RMB 6,960/t ($959/t) exw-Inner Mongolia on 29 July. Procurement from steel mills remained lower although as per reports, supply was limited which kept the prices from sharp decline.

Meanwhile, ferro silicon futures for September delivery on China's Zhengzhou Commodity Exchange (ZCE), prices saw a w-o-w increase of RMB 134/t ($18/t) to RMB 6,802/t ($937/t) on 29 July.

Outlook

August prices will be announced from Bhutan in the coming days which will further determine the price trajectory.