- Market participants wait for Bhutan’s Sep offers to be announced
- Charcoal prices rise INR 200-300/t, increasing raw material costs
Indian ferro silicon (Si:70%) prices rose by INR 1,300/t ($14/t) w-o-w to INR 88,300/t ($931/t) exw-Guwahati, as per BigMint’s assessment on 31 August. In Bhutan, prices edged up by INR 700/t ($7/t) w-o-w to INR 87,800/t ($926/t) exw. The price hike could be attributed to tighter supply in the market and higher offers from sellers, as most suppliers were out of stock during the month-end.
Market recap (25-31 August)
Limited offers support price rise: Ferro silicon prices in Guwahati and Bhutan remained firm towards month-end, supported by limited availability. Most sellers were already booked, while the market waited for Bhutan’s new price announcement for September, prompting remaining suppliers to raise offers. A Bhutan-based seller told BigMint, “Price trends are very unclear at the moment. Each plant is selling at their own rate,” highlighting the wide variation in offers among producers.
Meanwhile, as per sources, raw material costs continued to rise, with charcoal prices increasing by around INR 200-300/t ($2-3/t), adding to production pressures. A north-east India-based seller told BigMint, “Current raw material prices are not sustainable for manufacturers due to extremely high input costs and severe shortages.”
RINL floats 5,000-t purchase tender: RINL has issued a purchase tender for 5,000 t of ferro silicon (Si:70% min, 25-50 mm). Bid submissions are due by 3 September, while successful bidders are required to complete deliveries within 127 days from the date of the purchase order.
Chinese prices hold steady w-o-w: Ferro silicon (Si:75%) prices in China remained unchanged w-o-w at RMB 6,200/t ($923/t) exw-Inner Mongolia. Raw material and electricity costs in key producing regions were also largely steady, providing some support to prices. Producers avoided aggressive price adjustments, while steel mills continued to buy only as needed, with no major restocking.
Market participants were also closely monitoring ongoing negotiations for steel mill tenders, keeping trading activity cautious. Traders maintained a wait-and-see approach, while overall inventories remained at moderate levels.
ZCE futures rise w-o-w: Ferro silicon futures on the Zhengzhou Commodity Exchange (ZCE) for October deliveries rose by RMB 174/t ($26/t) w-o-w to RMB 6,134/t ($913/t) on 31 August.
Outlook
Indian ferro silicon prices are likely to remain firm in the coming week, supported by limited availability, higher input costs, and cautious selling by producers. Sources informed BigMint that Bhutan has kept its September ferro silicon offers unchanged m-o-m at INR 87,000/t ($916/t) exw, providing a stable benchmark for the Indian market.
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