India: Stable market trends keep ferro silicon prices unchanged
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- Modest increase in Chinese prices
- Anticipation builds around Bhutan's new offers
Indian ferro silicon (70%) prices remained stable w-o-w, with just a slight drop of INR 600/t ($7/t) seen as compared to the last assessment on 20 May 2024. The market showed no significant changes, and regular trades were seen being carried out at prevailing rates; hence, prices remained stable.
As per BigMint's assessment on 27 May, ferro silicon prices in India were INR 99,200/t ($1,193/t) exw-Guwahati. Prices in Bhutan were at INR 98,300/t ($1,182/t) exw, unchanged w-o-w. Last week, around 5,000 t of trades were reported within the price bracket of INR 97,500-99,500/t ($1,172-1,196/t).
Market updates
Routine market activities: Prices last week stabilised after fluctuating for over a month. Supply and demand remained at similar levels as seen in recent deals. With the US being the main destination, the export market continued to be stronger.
"We sold around 1,000-1,500 t material at INR 97,000-98,000/t ($1,166-1,178/t) and its easily getting sold," a producer from Bhutan was quoted as saying.
Additionally, several producers in both regions were either busy fulfilling orders that had already been placed or were sold out for the month.
Global market overview: On 27 May, ferro silicon (Si:75%) prices in China increased by RMB 60/t ($8/t) w-o-w to RMB 7,460/t ($1,030/t) exw-Inner Mongolia. There were rumors of Chinese producers cutting production, which resulted in a shortage of supply and increase in offers.
In reaction to the rise in Chinese prices, Malaysian prices also increased.
However, ferro silicon futures on China's Zhengzhou Commodity Exchange (ZCE) for September 2024 delivery remained steady with just a slight w-o-w drop of RMB 12/t ($2/t) to RMB 7,384/t ($1,020/t) on 27 May.
Outlook
With the month coming to an end, market participants are awaiting Bhutan's upcoming price announcement. As per sources, new offers are expected to increase m-o-m.
