Indian Ferro Silicon producers raised their offers as optimism returned to the market on news of rising Ferro Silico prices in China amid supply tightness.
“The prices were never meant to be as low as it was a week earlier but it regained its strength this week,” said a source expressing his satisfaction. He further claimed that prices were intentionally lowered by some major producers so as to entice buying, despite healthy demand.
SteelMint assessed Ferro Silicon prices at INR 95,000/MT (Ex-Bhutan) and INR 97,000/MT (Ex-Guwahati). However, the producers are observed to be also quoting at higher levels as they are confident their offers will get the acceptance soon.
“A bullish sentiment prevails through the Indian market tracking the rise in Ferro Silicon prices in China due to a supply shortage over inspection checks,” said another source explaining such a sharp rise in prices.
“The demand from the overseas market has also started rebounding,” said a Bhutanese producer. Though the current export offer is at USD 1,500/MT FOB Kolkata, but the same will climb up soon, he hinted.
On the future outlook, market participants are projecting Ferro Silicon prices to maintain stability while an upward movement is quite likely.
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