- Fewer transactions heard as market stays quiet
- China prices edge up, oversupply limits gains
Indian ferro silicon (70%) prices stayed largely stable last week, moving down marginally by INR 100/t ($1/t) as compared to the assessment on 22 September. With the month about to conclude, the market was mostly quiet as people were looking forward to next month’s price announcement.
As per BigMint’s assessment on 29 September, ferro silicon prices in India were INR 88,300/t ($995/t) exw-Guwahati. In Bhutan, prices inched down by INR 400/t ($5/t) w-o-w to INR 88,000/t ($992/t) exw. With key sellers in both India and Bhutan already sold out, not many deals were concluded last week.
Market summary (23-29 September)
Quiet market conditions, Bhutan prices awaited: The ferro silicon market remained quiet as buyers awaited October price announcement from Bhutan. Additionally, most sellers were already sold out or were busy supplying previously booked orders, leaving limited spot material availability. Amid the ongoing Navratri festival, domestic demand was muted.
However, export demand was reported to be strong, especially for 75 grade material, according to sources. In the southern region, offers witnessed a slight correction w-o-w, with prices dropping to around INR 91,000-92,000/t ($1,025-1,037/t) exw-Vizag.
Chinese market scenario: Ferro silicon (Si:75%) prices in China edged up by RMB 190/t ($27/t) w-o-w to RMB 5,950/t ($836/t) exw-Inner Mongolia. High inventories and oversupply kept upward movement limited. Steel mills were buying cautiously, resulting in lower transactions, while raw material price stability provided only minor support.
In the short term, the market is expected to stay weak and volatile. Oversupply, slow demand, and limited cost support continues to weigh on prices. Only sudden demand improvement or supply tightening may trigger a temporary rebound.
Ferro silicon futures on the Zhengzhou Commodity Exchange (ZCE) for November delivery went down by RMB 82/t ($11/t) w-o-w to RMB 5,610/t ($788/t) on 29 September.
Stability in silicon metal prices: Imported silicon metal prices to India from China (grade 553, Si:98.5%) stayed steady w-o-w with a marginal increase of $5/t to $1,385/t CFR Mundra on 29 September.
Outlook
October price announcement from Bhutan will determine the ferro silicon price trajectory in the days ahead.
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