India: Ferro silicon prices stable this week, potential hike in near term

Indian ferro silicon (70%) prices increased marginally by INR 100/t w-o-w from the previous assessment on 18 December, but otherwise stayed consistent.

As per SteelMint's assessment on 26 December, Indian ferro silicon prices stood at INR 101,800/t exw-Guwahati. Prices in Bhutan increased by INR 500/t w-o-w.

Market recap

Unchanged market conditions: Following the announcement of new pricing at the start of each month, ferro silicon prices usually follow the same pattern. There are variations, which happen as discounts are offered to certain bulk orders. However, most of the producers in Guwahati and Bhutan were still quoting material at INR 102,000/t exw. Prices likewise didn't vary much because trades and buying inquiries were both at a constant level.

Global roundup: Ferro silicon (Si:75%) prices in China stayed stable at RMB 7,150/t ($1,001/t) exw-Inner Mongolia. With the approaching of season, only need-based purchasing was done. Hence, sellers were also not much interested to re-stock their inventories.

Ferro silicon futures for December 2023 delivery on China's Zhengzhou Commodity Exchange (ZCE) experienced a drop of RMB 72/t ($10/t) w-o-w to RMB 6,720/t ($940/t) on 26 December.

Outlook

Prices are anticipated to remain within a certain range this month, but there are indications of a possible increase in the coming month due to a power shortage in Bhutan.