India: Ferro silicon prices stable; market awaits Bhutan offers

• Market eagerly anticipates new offers from Bhutan
  
  
• China's domestic prices stable while ZCE futures rise w-o-w
  
  

Prices of Indian ferro silicon (70%) remained stable w-o-w on 27 May. As the new month began, producers held steady as market players await new offers from Bhutan. Prices have stayed stable with supply and demand at normal levels.

According to BigMint's assessment on 3 June, ferro silicon prices in India were INR 99,200/t ($1,188/t) ex-works Guwahati. Prices in Bhutan increased marginally by INR 100/t ($1.2/t) week-on-week to INR 98,400/t ($1,178/t) ex-works.

Weekly review

Market remains cautious: With the new month starting, market players are cautious, waiting for a new price announcement from Bhutan. Monthly average prices in May were around INR 99,480/t ($1,191/t), while Bhutan's prices were INR 98,000/t ($1,173/t) ex-works. Prices are expected to remain steady considering current market dynamics.

Additionally, export prices remained steady week-on-week at $1,290/t FOB Kolkata as producers resist lowering offers. "We have started receiving export inquiries, but no orders have been booked so far. Demand is not weak, but buyers need really low prices. Chinese dumping at low prices is also not feasible due to the daily increase in ocean freight," a manufacturer from Bhutan told BigMint.

Producers are also unwilling to lower offers as SAIL has issued a ferro silicon procurement tender for 15,525t for its 7 plants, drawing significant attention from producers.

Prices Remain Stable in China: Prices of ferro silicon (Si:75%) in China saw a marginal hike of RMB 50/t ($7/t) w-o-w, currently at RMB 7,510/t ($1,037/t) ex-works Inner Mongolia, showing no significant change from the previous week. Despite an uptick in demand and price adjustments, market activity remains subdued. Some regions have resumed factory operations, slightly increasing overall output, but this has not significantly energized the market.

Trends in ZCE Futures Prices: Ferro silicon futures for the September 2024 delivery contract on China's Zhengzhou Commodity Exchange (ZCE) increased by RMB 44/t ($6/t) week-on-week, closing at RMB 7,428/t ($1,025/t) on 3 June.

Outlook

According to information obtained from market participants, there seems to be a moderate level of demand, as industry stakeholders are eagerly anticipating Bhutan's upcoming price announcement for June 2024. The situation will become clearer once that information is released.