Indian Ferro Silicon prices stabilized as producers did not want to lower their offers further despite moderate demand.
Market sources are hopeful that prices can bounce back in the coming days as news of production cuts in China lifted the sentiments.
“Undoubtedly the demand for the commodity is constant as inventory levels with most of the producers are low,” said a source referring to the sales volume. However, the domestic market has been mirroring the Chinese market and buyers are unwilling to pay higher, he added.
SteelMint assessed Ferro Silicon offers at INR 96,000/MT (Ex-Bhutan) and INR 97,000-98,000/MT (Ex-Guwahati).
Some of the producers also hold an optimistic view of the commodity as restrictions in Chinese Ferro Silicon producing province could curtail the supply and would set panic among the buyers triggering a sharp rise in prices. While in contrast to the same, some believe that prices might see further lows.
The demand from the overseas market remained low but constant while producers had to reduce offers to conclude deals. The export offers are assessed at USD 1,570/MT FOB Kolkata.
On the future outlook for Ferro Silicon, there is a lot of speculation over the future movement of prices, but a lot will be determined by the direction prices in China takes.
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