- Suspended plants in Meghalaya resume operations
- ZCE futures prices remain steady
Indian ferro silicon (70%) prices witnessed a slight decline of INR 600/t ($7/t) as compared to the previous assessment on 10 March primarily due to the imbalance between bids and offers.
As per BigMint’s assessment on 17 March, ferro silicon prices in India stood at INR 99,000/t ($1,143/t) exw-Guwahati. In Bhutan, prices were at INR 99,200/t ($1,146/t) with a marginal drop of INR 400/t ($5/t) w-o-w. Around 800 t of trades were concluded last week in Bhutan within the price range of INR 99,000-99,500/t ($1,143-1,149/t) exw.
Market overview (11-17 March)
Bhutanese suppliers adjust offers: The initially released offer prices of INR 100,000/t ($1,155/t) exw couldn’t sustain for long in the market as bids from buyers stayed lower. Hence, a major segment of the sellers had to adjust their offers.
Demand was subdued in the export segment as well. A Bhutanese seller informed BigMint, “We are not able to finalise any export orders. There are many inquiries, however buyers are getting cheaper options from other countries.” Indian ferro silicon export offers (Si:70%) were at $1,200/t FOB Kolkata, unchanged w-o-w.
Meghalaya plants resume operations: Around six ferro silicon plants in Byrnihat, Meghalaya, resumed operations last week after a 35-40 day suspension over pollution control violations. While production has restarted, it may still take a few days for the material to reach the market.
Global market scenario: Ferro silicon (Si:75%) prices in China edged down by RMB 70/t ($10/t) w-o-w to RMB 6,240/t ($863/t) exw-Inner Mongolia. Prices remained stable amid a gradual demand recovery, supported by positive economic expectations. However, sellers stayed cautious, managing rising inventories and shipping moderately to secure profits.
In Japan, reports indicated that traders were reportedly struggling to sell material due to high inventory levels, limiting new purchases. Current offer levels were feasible but they wanted to sell out existing stocks first.
Prices were largely stable on the Zhengzhou Commodity Exchange (ZCE) platform, moving up slightly by RMB 36/t ($5/t) w-o-w to RMB 6,058/t ($838/t) on 17 March.
Outlook
Considering existing market conditions and cautious buying approach, prices may witness some correction in the days ahead.
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