- Market volatility driven by supply-demand mismatch
- Supply constraints from Bhutan
Indian ferro silicon (70%) prices saw a w-o-w decrease of INR 1,700/t ($20/t) from the previous assessment on 13 May. Prices decreased because there were lesser inquiries for the material, which resulted in fewer offers.
Ferro silicon prices in India were INR 99,800/tonne ($1,197/t) exw-Guwahati on 20 May, according to BigMint’s assessment. Bhutan experienced a decrease in prices as well, falling by INR 1,900/t ($23/t) w-o-w to INR 98,300/t ($1,179/t) exw. In both the regions, around 500 t of trades were concluded last week in the range of INR 99,500-100,000/t ($1,194-1,200/t).
Weekly market overview
Variations in supply, demand: Bhutan’s prices were released at INR 98,000/t ($1,176/t) exw, taking into account the market conditions of the previous month. Later, as the days went by, prices rose and then decreased again. Supply-demand dynamics were the primary reasons behind it.
According to a producer from Bhutan who spoke with BigMint, “We are fully booked with export orders, so we don’t have much stock to offer.” Some North East producers were also either fully booked for the month or fulfilling orders that had already been placed.
Still with the reduced offers from remaining producers, demand remained subdued which kept prices under pressure.
China’s market scenario: On 20 May, ferro silicon (Si:75%) prices in China were RMB 7,400/t ($1,043/t) exw-Inner Mongolia. According to sources, the domestic Chinese market’s tight supply kept prices high.
Furthermore, ferro silicon futures on China’s Zhengzhou Commodity Exchange (ZCE) for September 2024 delivery contract saw a w-o-w increase of RMB 206/t ($29/t) to RMB 7,396/t ($1,043/t) on 20 May.
Outlook
The market remains unpredictable, and price fluctuations are expected in the days ahead.