Ferro silicon prices in India fell slightly due to limited trade, with small-time buyers hesitant to book costlier material. Furthermore, market participants exercised caution when procuring material in the face of market volatility.
According to SteelMint’s assessment on 16 December, ferro silicon (70%) prices were hovering at around INR 118,700-123,500/tonnes(t) exw- from both Guwahati and Bhutan. And around 1,000 t of transactions were recorded this week.
Domestic ferro silicon demand remains low despite price reductions. A few buyers were still on the sidelines, waiting for prices to fall further.
However, Bhutanese producers were unwilling to lower their prices because there were rumours that Bhutan’s power tariffs would be raised in January 2023.
China market overview:
This week, the domestic ferro silicon market for 72% grade remained stable, while the domestic market for 75% fell from the previous week. On 15 December, ferro silicon (75%) prices in China were hovering around RMB 8,500/t exw-Inner Mongolia. Against the current backdrop of mismatch in expectations and reality, traders were generally cautious in their operations, but the market trend at the end of the year appears to be volatile. Ferro silicon prices are expected to remain stable in the short term.
Outlook
Indian ferro silicon prices remain under pressure as producers from the south offer lower prices. Furthermore, sources have informed that the BIS certification required by sellers from Bhutan will not be extended because all plants in this Himalayan kingdom have been inspected. This means Bhutan sellers will now be able to dispatch material without any hurdles in India and this would translate into higher inventory and not much shortage of material. Resultantly, ferro silicon prices may be under pressure in the near term.
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