India: Ferro silicon prices rise further on tight supplies, higher input costs

• Most producers focused on executing orders received earlier in month
• Buyers remain cautious amid higher prices, make need-based purchases

Indian ferro silicon (Si:70%) prices increased by INR 2,000/t ($21/t) w-o-w to INR 91,000/t ($950/t) exw-Guwahati, as per BigMint’s assessment on 21 September. Prices in Bhutan also increased by INR 2,500/t ($26/t) w-o-w to INR 91,500/t ($955/t) exw. Prices rose amid limited supplies in the market, along with rising input costs, especially of semi coke.

Overall, the market remained cautious; hence, limited deals for around 700 t were reported last week in both regions within the price bracket of INR 90,000-93,500/t ($939-976/t) exw.

Market recap (15-21 September)

Offers rise on supply constraints: Ferro silicon prices continued to rise as most producers had already secured bookings at the beginning of the month and were focused on executing those orders. With producers largely sold out for September and holding limited inventories, fresh offers were quoted at higher levels.

The rise was further supported by higher semi-coke costs, particularly in Bhutan. A seller recently told BigMint, “Prices of semi-coke have gone up from around INR 21,000/t ($219/t) to INR 28,000/t ($292/t) on landed Kolkata basis. This has increased our cost of production, and this is expected to further go up. We will be importing electricity from India probably from next month onwards.”

Meanwhile, buyers remained cautious amid the sharp price rise and largely limited purchases to need-based bookings only.

Chinese prices remain stable: China’s ferro silicon market remained cautious, with prices unchanged w-o-w at RMB 6,350/t ($948/t), as weak downstream demand and need-based steel mill procurement limited buying activity. Softer semi-coke prices slightly reduced cost support, while balanced inventories and steady supply kept the market rangebound and subdued.

ZCE futures edge down w-o-w: Ferro silicon futures on the Zhengzhou Commodity Exchange (ZCE) for November deliveries fell slightly by RMB 38/t ($6/t) w-o-w to RMB 5,990/t ($895/t) on 21 September.

Outlook

Indian ferro silicon prices are likely to remain firm in the coming week, supported by tight availability and elevated input costs. However, cautious, need-based buying may limit further upside.