The Ferro Silicon market turns gloomy, on the back of inventories piling up with producers and supply outstripping demand.
Ferro Silicon offers were substantially lowered to induce greater buying interest, as selling pressure on the producers grows. The current market scenario is reflective of the slowdown in the Indian steel industry.
“The market is going through the throes of uncertainty and producers are selling at various prices way lower than the current levels,” a producer said, citing deals concluded at low prices.
SteelMint learned that buyers are cautious as they anticipate further fall in prices.
The current price of Ferro Silicon (grade 70-75%) is assessed at INR 86,000/MT (Ex-Bhutan) and INR 86,000-87,000/MT (Ex-Guwahati). However, most deals have reportedly been concluded at INR 86,000/MT.
“Prices are expected to increase in the near term, and this is the absolute bottom,” said a producer beaming with optimism.
However, demand from overseas markets seems non-existent and current export offers are assessed at USD 1,330/MT (Ex-Kolkata).
Demand for the commodity has not picked up and, on the future outlook, prices are likely to be under pressure unless demand picks up.
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