Ferro Silico prices in India witnessed a sharp hike as bullish sentiment in the steel market coupled with improved trade levels has lent support to the commodity.
With the strengthening of the steel market in India, there is an upsurge in demand for Ferro Silicon in the market, prompting Ferro Silicon producers to hike their offers.
“There has been a bullish sentiment sensed in the Ferro Silicon market,” said a producer source. Earlier, a rise in Chinese Ferro Silicon prices created an optimism in Indian market but a recent fall in Chinese demand due to buyers’ cautiousness has been unable to contain the commodity’s rising market in India, he added.
A surge in demand for Ferro Silicon has created an upward momentum in the market. SteelMint assessed that the stock levels of buyers are diminished, with steel production rising, forcing them to demand more.
Another source claimed that previously some of the sellers were manipulating the market by offering at low prices despite firm demand but strengthening steel market has provided room for a rise in commodity’s offers.
SteelMint assessed the current price of Ferro Silicon grade 70-75% at around INR 1,01,000/MT (Ex-Bhutan) and (Ex-Guwahati).
“Presently, the Indian Ferro Silicon market may not face any foreign threat as the import prices are relatively higher,” mentioned a market source.
In line with the increased domestic prices, the export offers of Bhutanese Ferro Silicon also went up to USD 1,650/MT (FOB Kolkata). Although, with good realizations in the Indian market, producers from Bhutan and India are looking to export the alloy.
On the future outlook, market participants are of the view that the Indian Ferro Silicon market may run steadily amid improving steel industry.
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