Ferro Silicon prices remain firm driven by unaltered demand coupled with low inventory levels.
“China being the epicenter of this event have been exploiting the market by quoting high offers,” said a producer source while discussing the sharp rise in global offers. Furthermore, he also mentioned that the Malaysian offers will not rise any further, unprovoked by Chinese prices.
Bhutanese producers are out of inventory and their December production has already been booked. Ferro Silicon export offers have been assessed at USD 1600/MT FOB Kolkata, but some participants from Bhutan have been quoting higher offers, while deals with those offers could not be confirmed.
A producer source from Guwahati has also revealed his concern regarding the commodity as a confusion is created in the market regarding the sustainability of the present offers. “Higher Ferro Silicon prices are resulting in buyers to turn towards alternatives, whereas, in another case, some of the producers of other ferroalloys are contemplating shifting production Ferro Silicon due to its high prices,” said a producer expressing his concern as Ferro Silicon offers might come to a halt in both the cases.
“Ferro Silicon demand in India is impressive but high offers in the domestic market are supported by global prices,” said another producer. Moreover, he added that an export proposal from Malaysia has been received for 70% grade commodity in the range of USD 1,750-1,800/MT CIF India.
Ferro Silicon offers are assessed at INR 1,10,000/MT (Ex-Bhutan) and (Ex-Guwahati). However, in Guwahati, producers began to quote at INR 1,15,000/MT, while no deals been heard to have concluded.
On the future outlook, the market participants are confident of Ferro Silicon price stability and any chances of downward correction of the same remain unlikely in the near-term.
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