India: Stability in ferro silicon prices as demand and trade remain consistent

Indian ferro silicon (70%) prices remained steady with a marginal drop of INR 200/t w-o-w as compared to the previous assessment on 4 December.

As per SteelMint's assessment on 11 December, Indian ferro silicon prices stood at INR 101,700/t exw-Guwahati. Around 1,000 t of deals were finalized in the price bracket of INR 101,800-102,000/t. On the other hand, prices in Bhutan inched down by INR 600/t w-o-w as discounts were offered for bulk orders. Trades in Bhutan were carried out in the INR 100,000-102,000/t price range in the previous week.

Market highlights over the week

Negotiations from buyers: Although the initial quotations for this month were at INR 102,000/t exw from both the regions, there was negotiation from buyers which is a normal practice in trades. This led prices to come down a bit particularly in Bhutan. Some producers were also catering to tender orders so they were not selling material in the spot market.

China's context: Ferro silicon (Si:75%) prices in China were steady w-o-w at RMB 7,150/t ($997/t) exw-Inner Mongolia. There were also reports of some factories ceasing operations, which might have an impact on the final output. Majority of the market participants were awaiting bidding prices of steel plants for December.

However, ferro silicon futures for December 2023 delivery contract on China's Zhengzhou Commodity Exchange (ZCE) increased by RMB 202/t ($28/t) w-o-w to RMB 6,838/t ($953/t) on 12 December.

Outlook

There's a possibility that prices will remain within current range, with minor corrections likely in the upcoming days.