Ferro Silicon prices fell for the third straight week with demand dented as buyers were retreating due to diminishing steel margins.
Ferro Silicon prices moved lower as offers softened and fewer deals were done in what sources called a softer market from last week.
“The market has been highly inactive on the backdrop of fiscal year-end,” said a source referring to one of the reasons for flat demand. He further added that buyers have taken a cautious stance expecting a further fall in prices.
The current price of Ferro Silicon grade 70-75% is down to around INR 99,000/MT (Ex-Bhutan) and INR 1,00,000/MT (Ex-Guwahati). However, some deals were heard to have been concluded below the aforementioned levels. Few Ferro Silicon producers were aggressively trying to offload stocks, fearing the price declines could intensify.
In line with sliding Chinese Ferro Silicon prices, Indian and Bhutanese producers are finding it difficult to keep up their prices. Sources agreed that trade from overseas trade was limited, although inquiries remained healthy.
SteelMint learned that in the European market Bhutanese producers have decided to cut their offers to entice buying. Export offers are assessed to correct downwards to USD 1,670/MT FOB Kolkata.
On the future outlook, buying interest in Ferro Silicon could be under pressure, as the industry is facing a supply overhang.
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