Domestic prices of Ferro Silicon fell continuously since Nov’18 and went down by INR 2000/MT for both Ex-Bhutan and Ex-Guwahati in the second week of Jan’19 as compared to previous week.
Demand is persistently low in the market despite the falling prices. Traders are unwilling to commit with a hope of trading at lower prices than offered. There is high uncertainty in the market about the prices. However, there is a pressure developing in the market for the producers. With production cuts in China, there are chances of Ferro Silicon prices bouncing back. Moreover, demand is developing in the overseas market especially in Europe.
Bhutanese and India producers are offering at USD 1250/MT FOB Kolkata. Export prices fell by USD 20/MT for FOB. Domestic prices were reported INR 80,000/MT by both Ex-Bhutan and Ex-Guwahati.
On the future outlook, the prices of Ferro Silicon can face challenge to revive its demand with its continuous falling prices. Prices are close to bottom levels and a further fall is highly unexpected at this level.
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