BigMint is a Market Intelligence and Price Reporting firm that caters to the data and analytics requirements of businesses in the commodities sector. It publishes real time prices and information, which is impartial, independent and reliable, sourced from all industry interfaces – sellers, buyers, agents and traders. This data is filtered and passed through very stringent, calculative assessments before final prices are derived, thereby giving our clients accurate pricing.

Go to List

India: Ferro silicon prices stable amid tight supplies

...

Ferro Silicon

BigMint Bureau

157 Reads

20 Aug 2024, 19:16 IST

India: Ferro silicon prices stable amid tight supplies

Major suppliers fulfilling tender orders

Slight drop in China's domestic prices

Prices of Indian ferro silicon (70%) have remained steady w-o-w, with only a slight fluctuation in INR 400/t ($5/t) compared to the previous assessment on 12 August. The stability in prices is attributed to major suppliers focusing on fulfilling tender orders, leading to limited trades in the spot market.

According to BigMint's assessment on 20 August, ferro silicon prices in India were INR 88,000/tonne ($1,050/t) ex-works Guwahati. Meanwhile, Bhutan's prices saw a decrease of INR 1,300/t ($16/t) w-o-w, bringing them to INR 88,500/t ($1,056/t) on 20 August. Approximately 400 t of deals were concluded last week in both the regions within the price bracket of INR 88,000-89,000/t ($1,050-1,062/t) exw.

Weekly market recap

Spot market witnesses limited trades: In the previous week, only t of deals were reported to BigMint, a significant decrease from the 5,000 t reported in the week before. This decline in spot market activity is partly due to some sellers focusing on fulfilling tender orders, including those from Steel Authority of India Limited (SAIL), which limited the availability of supplies in the spot market. Additionally, the ongoing festival season further suppressed demand for ferro silicon this week.

However, a few sellers indicated that lower demand compelled them to reduce their offers. A producer from the northeastern region said, "I have around 1,000 t of material in stock, and buyers are less willing to purchase at the current market prices."

Drop in China's prices: Ferro silicon (Si:75%) prices in China fell by RMB 150/t ($21/t) w-o-w to RMB 6,730/t ($942/t) exw-Inner Mongolia. There were reports of production cuts and maintenance in key production areas as profit margins were reduced. Ferro silicon futures for October delivery on China's Zhengzhou Commodity Exchange (ZCE) also saw a decrease of RMB 108/t ($15/t) w-o-w to RMB 6,324/t ($886/t) on 20 August.