- Offers reduce in response to weak demand
- Decline in China’s domestic, ZCE futures prices
Prices of Indian ferro silicon (70%) decreased by INR 1,100/t ($13/t) w-o-w as compared to the previous assessment on 18 March. Prices fell as demand remained at a moderate level and there was enough material available to meet market requirement.
According to BigMint’s assessment on 27 March, the price of ferro silicon in India was INR 100,600/t ($1,207/t) exw-Guwahati. Prices in Bhutan also fell by INR 1,300/t ($16/t) w-o-w, reaching INR 100,700/t ($1,208/t) exw. Over the course of the previous week, around 3,200 t of trades were completed in both regions within the price range of INR 99,000-102,000/t ($1,187-1,223/t).
Market review
Bhutan’s monthly offers, pricing strategies: The ferro silicon market in India, especially in the north east, is mostly driven by offers from Bhutan, which are revealed at the start of each month. Many market participants informed BigMint that prices for the upcoming month may be lower than they are now given the state of the market. Therefore, in order to sell off the material, offers were reduced.
“Yes, we’re at INR 100,000-101,000/t ($1,199-1,211/t) level but offering discount for bulk orders above 100 t,” a well-known producer from Bhutan told BigMint.
Chinese ferro silicon prices drop: Prices of ferro silicon (Si:75%) in China decreased by RMB 150/t ($21/t) w-o-w to RMB 6,400/t ($885/t) exw-Inner Mongolia. One of the factors for the price decline was the decline in semi-coke prices. There were also reports of production cuts/suspension in some areas. Production levels in the northern China, especially in Ningxia, were lower than anticipated.
Decline in ZCE futures prices: On China’s Zhengzhou Commodity Exchange (ZCE), ferro silicon futures for the May 2024 delivery contract decreased by RMB 156/t ($22/t) w-o-w, closing at RMB 6,372/t ($882/t) on 27 March.
Outlook
Given the prevailing market conditions, prices could undergo additional adjustments in the coming days. Additionally, upcoming prices from Bhutan for the next month are expected to remain on the lower side.