- Market looking forward to fresh offers from Bhutan
- China’s domestic, ZCE futures prices show an upward trajectory
Prices of Indian ferro silicon (70%) saw a little increase of INR 600/t ($7/t) w-o-w from the previous assessment on 22 April. As the month is about to end, market players were waiting for new offers from Bhutan, and prices were stable as supply and demand stayed at normal levels.
As per BigMint’s assessment on 29 April, ferro silicon prices in India stood at INR 98,200/t ($1,176/t) exw-Guwahati. Prices in Bhutan inched up by INR 400/t ($5/t) w-o-w to INR 99,200/t ($1,188/t) exw. In the prior week, around 500 t of deals were concluded in both the regions within the price bracket of INR 98,000-100,000/t ($1,173-1,197/t).
Weekly market review
Sustained supply-demand stability: Due to steady supply and demand, ferro silicon prices did not vary significantly last week. Furthermore, some producers were either completely booked or withheld their offers while they awaited fresh prices from Bhutan.
“Buyers are offering us INR 100,000/t ($1,197/t), but we don’t have material currently,” a Bhutanese producer who had his material reserved told BigMint.
Price hike in China: Price of ferro silicon (Si:75%) increased in China and is currently at RMB 7,050/t ($973/t) exw-Inner Mongolia. The growing demand and limited material supply created an imbalance that favoured the sellers. There was a minor decrease in electricity rates as well, but some reportedly kept their inventory on hold, which drove up prices even further.
Furthermore, on 29 April, ferro silicon futures for the September 2024 delivery contract on China’s Zhengzhou Commodity Exchange (ZCE) saw a w-o-w increase of RMB 122/t ($17/t) to RMB 6,878/t ($949/t).
Outlook
The market’s trajectory in the coming days will depend on Bhutan’s upcoming offer for the next month. BigMint estimates that the new offers may resemble this month’s prices or potentially increase slightly.