India: Ferro silicon prices inch down amid market instability

• Offers from select Bhutanese producers on hold
  
  
• China's domestic, ZCE futures prices increase
  
  

In comparison to the previous assessment on 6 May, prices of Indian ferro silicon (70%) experienced a slight decrease of INR 500/t ($6/t) w-o-w. Prices fell because there was some uncertainty regarding demand, especially in Bhutan.

As per BigMint's assessment on 13 May, ferro silicon prices in India stood at INR 101,500/t ($1,215/t) exw-Guwahati. Prices in Bhutan fell by INR 1,300/t ($16/t) w-o-w to INR 100,200/t ($1,200/t) exw. In the price range of INR 100,000-101,800/t ($1,197-1,219/t), around 400 t of trades were concluded in both the regions last week.

Weekly market overview

Varying conditions across regions: Bhutan continues to have primary influence on pricing in the North East. However, this time, prices did not remain consistent and saw fluctuations in the Bhutanese market. BigMint was notified by a significant Bhutanese producer who was currently not selling any material, saying, "We're in wait-and-watch mode right now due to the market's volatility." So there were concerns regarding demand and there were hardly any buyers at higher offers.

In the North Eastern region, market players claimed that demand was at normal levels and therefore, no major changes were seen in the prices.

Prices on the rise in China: Prices of ferro silicon (Si:75%) increased by RMB 100/t ($14/t) w-o-w to RMB 7,250/t ($1,002/t) exw-Inner Mongolia on 13 May. Price increase was supported by lower supply from a few producers and higher semi-coke costs.

In addition, ferro silicon futures on China's Zhengzhou Commodity Exchange (ZCE) for the September 2024 delivery contract saw a w-o-w increase of RMB 150/t ($21/t) to RMB 7,190/t ($993/t) on 13 May.

Outlook

The present market seems volatile, and upcoming prices will depend on demand and market dynamics.