India: Ferro silicon prices surge as market adjusts to higher offers

• Meghalaya plants remain shut
  
  
• Stability returns in Chinese market
  
  

Indian ferro silicon (70%) prices have been rising over the past few weeks, going up again by INR 3,500/t ($42/t) w-o-w in comparison to the previous assessment on 7 October. Prices increased as market gradually started to accept higher offers quoted by sellers. And this price hike, caused by the closure of the Meghalaya plant, is benefiting 2-3 producers in the South.

Ferro silicon prices in India were INR 109,500/t ($1,303/t) exw-Guwahati, as assessed by BigMint on 14 October. Prices in Bhutan also went up by INR 2,100/t ($25/t) w-o-w to INR 108,600/t ($1,292/t) exw. Last week saw conclusion of around 1,000 t of deals in both the regions within price bracket of INR 104,500-110,800/t ($1,243-1,318/t) exw. Furthermore, few deals have also closed to below at around INR 103,500/t ($1225/t)exw.

Gradual acceptance of higher offers

Some producers in the North east along with others in Bhutan had started quoting at around INR 110,000/t ($1,309/t) exw earlier. Although some bulk bookings were being done at lower prices but in the later part of last week, deals were concluded at the higher quoted offers. The suspension of Meghalaya plants continues to be the primary reason for it along with some plants catering to tenders or previously booked orders. So sellers in the market remained limited.

A producer from North east was quoted as saying to BigMint, "We expect prices to go up further and in the coming days, it may reach up to INR 115,000/t ($1,368/t) exw."

China's market scenario

Ferro silicon (Si:75%) prices in China were largely stable w-o-w at RMB 6,810/t ($957/t) exw-Inner Mongolia. Sources indicated that supply-demand scenario had improved but overall spot transactions remained limited.

Ferro silicon futures for January 2025 delivery on the Zhengzhou Commodity Exchange (ZCE) were steady too, falling by RMB 16/t ($2/t) w-o-w to RMB 6,618/t ($930/t) on 14 October.

Outlook

Timeline for the re-opening of Meghalayan plants remains uncertain, and with the rise in offers prices may continue to trend upward in the days ahead.