Ferro Silicon prices in India go further down despite adequate demand. Prices in the domestic market went down to the range of INR 76,000/MT to INR 77,000/MT for both Ex-Guwahati and Ex-Bhutan. However, prices may go up in line with rising demand.
Meanwhile, few market sources are of the opinion the push to clear inventories have restrained the traders from quoting high prices. Domestic prices are affected as one of the largest producer from Bhutan has cut the prices. Producers from Bhutan and Guwahati are now quoting in the range of INR 76,000-77,000/MT.
Tightening supply of Ferro Silicon is about to happen due to the suspension of production by a number of small Ferro Silicon plants around the world. Many small producers have shut down their operations or were reported to be going on plant maintenance for an unspecified length of time. Many Ferro Silicon suppliers from China were reported to have shifted their production line to Silicon Carbide due to prevalent low prices as they quote that will not likely restart their operations until Ferro Silicon prices go up significantly.
Export prices were also down to USD 1200-1210/MT FOB Kolkata. However, demand is picking up and SteelMint learned that there are chances of prices to go up as supply situation will remain weak in the North East region of India as many producers are already booked out.
Prices in the Export Market were affected due to low pre – New Year trading activities. On the future outlook, Ferro Silicon prices may rebound soon as the market expectation is that supply-demand dynamics will be the main reason behind the rise in prices.
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