Steady demand coupled with limited inventory with producers has encouraged Ferro Silicon producers to hold their prices firm.
Amid healthy buying activity, Bhutanese and Indian Ferro silicon producers have kept the mainstream prices for 70-75% grade unchanged, with deals being concluded at around INR 1,01,000/MT (Ex-Bhutan) and (Ex-Guwahati). However, few deals are heard to have conducted below the aforementioned level as well.
Justifying the lower realization rates, a producer source mentioned that some sellers can conclude deals at lower levels to achieve their urgent cash requirement. Moreover, another source claimed that the commodity sold at low prices are old stocks.
The overseas market also remains moderate as producers are able to realize their commodity at higher prices there. A rising Ferro Silicon price in China due to limited supply has also created a bullish market sentiment for the commodity.
SteelMint assessed Ferro Silicon export offers at USD 1,630-1,650/MT FOB Kolkata.
On the future outlook, market participants are waiting for Bhutanese producers to release their prices as they expect the same to move up on rising inquiries.
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