- Bhutan’s May offers drop INR 1,000/t ($12/t) m-o-m
- Ferro silicon futures on China’s ZCE decline
Indian ferro silicon (70%) prices stayed largely steady last week, inching up slightly by INR 500/t ($6/t) in comparison with the previous assessment on 28 April. Prices stayed stable as the majority of sellers both in north east India and Bhutan adapted to the newly announced offers of INR 95,500/t ($1,129/t) exw.
Ferro silicon prices in India were assessed at INR 95,500/t ($1,129/t) exw-Guwahati, as per BigMint’s assessment on 5 May. Bhutan also was at the same level, with prices edging down by INR 300/t ($4/t) w-o-w. A total of 2,700 t of deals were concluded in both the regions last week within a price bracket of INR 95,000-96,000/t ($1,123-1,135/t) exw.
Market overview (29 April – 5 May)
Market aligning with Bhutan’s offer: The monthly offer from Bhutan for May was released at INR 95,500/t ($1,129/t) exw, down INR 1,000/t ($12/t) m-o-m. A Bhutan-based source informed BigMint, “Prices might correct later as and when required depending on market forces.”
Another seller informed, “Many plants have kept their offers at INR 95,500/t ($1,129/t) exw but we are at INR 96,000/t ($1,135/t) exw as we’re not under pressure to sell.”
However, for some deals prices were lowered from the announced price depending on quantity. Largely, markets in both the regions operated at steady price levels.
South India’s market trends: Ferro silicon producers in the southern part of India kept their offers at INR 95,000-96,000/t ($1,123-1,135/t) exw. However, demand stayed on the lower side and only need-based purchases were heard.
Chinese prices steady amid holiday lull: Ferro silicon (Si:75%) prices in China remained unchanged w-o-w at RMB 6,240/t ($858/t) exw-Inner Mongolia. The market saw muted activity due to the holidays in China. Market participants also adjusted their offers accordingly, with some noting that a recovery is unlikely without external support such as government stimulus. Additionally, the supply of 75% grade ferro silicon was relatively limited compared to the more commonly used 72% grade in China, prompting Chinese producers to seek a small premium on 75% grade exports.
Drop in ZCE futures prices: On the Zhengzhou Commodity Exchange (ZCE), prices saw a decline of RMB 210/t ($29/t) w-o-w to RMB 5,398/t ($742/t) on 6 May.
Outlook
As the offers for May have just been announced, so prices in the coming days are likely to hold steady with minor variations expected.
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