Skyrocketing Ferro Silicon offers perplexed the market participants who articulated mixed views of its overall impact.
“This practice is not healthy for the market as price may come down in a similar way it went up,” said a producer source expressing his concern over the matter. His primary concern is the steep rising offers of the commodity, which might not get accepted and buyers might opt for alternatives.
“The present Ferro Silicon offers are a result of panic pricing and this bubble might bust in near term,” said another source focusing on the Indian market. He added that the high international offers are supporting the elevated Ferro Silicon prices in India. Moreover, he said that many other players have also shifted to Ferro Silicon due to higher margins and it might have some effect on the market.
However, to counter that another producer said that the present price is the outcome of the demand-supply mechanism. “Ferro Silicon offers are expected to sustain as there is a global shortage of the commodity and even some of the sellers are booked at such higher prices for January shipment, which indicates the positive movement of prices and stability of the same,” he said supporting his comment on the commodity is not being traded on the spot price.
SteelMint assessed Ferro Silicon offers to climb further at INR 1,10,000/MT (Ex-Bhutan) and (Ex-Guwahati).
The global shortage has encouraged a further rise in offers of Ferro Silicon in overseas market with the export price being USD 1600/MT FOB Bhutan. However, it has been heard that offers have also been floated at much higher levels.
On the future outlook, the Ferro Silicon offers are expected to move up further supported by global prices.
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