Indian Ferro Silicon offers plummeted in a competitive market despite regular demand.
“We are receiving constant inquiries but are unable to raise offers as our competitors are selling at low prices,” said a source, expressing concern over persistent low margins.
Seconding him, another source said: “This could simply be termed as aggressive pricing to entice buyers as no other factor can be assumed to be playing any role in lowering prices.”
The fall, although not precipitous, is difficult to explain as prices have started rising in the Chinese market owing to supply constraints, he added.
Demand for the commodity remains constant as some producers claim to be low on inventory due to regular trade.
SteelMint assessed Ferro Silicon offers at INR 90,000/MT (ex-Bhutan) and INR 91,000/MT (ex-Guwahati). However, some producers are still firm in their offers which are higher than the aforementioned levels.
Realization of Ferro Silicon in the overseas market is reportedly gaining momentum resulting in a bullish sentiment among market participants.
As of now, deals are being concluded at USD 1,460-1,470/MT FOB Kolkata.
On the near-term outlook, market participants expect prices to correct upwards, acknowledging the current levels to be unrealistic and expecting a rebound in prices.
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