Ferro Silicon prices unchanged from last week, as end-users perceive ample supply has outstripped demand levels. The market was relatively calm as buy side participants seemed to shrink away.

Indian Ferro Silicon market is currently stagnant on low demand. In Guwahati Ferro Silicon (grade70-75) is being offered at INR 75,000 /MT. Demand for Ferro Silicon produced in the North-Eastern states of India is weak as production has increased, with new Ferro Silicon capacities having come up in places like Andhra Pradesh and Raigarh.

SteelMint learned from market sources Jindal Stainless Limited (JSL) has a requirement of almost 1200 MT Ferro Silicon in a month for its Jajpur plant, for which they usually procure from Meghalaya based producers, but last week they have imported the material as it was coming out to be cheaper from other countries. Also, the Bhutan Ferro Silicon grade does not match their desired quality.

A producer source from Meghalaya stated, “If the Rupee depreciates then only prices of Ferro Silicon will increase, otherwise it will stay at this level.”

SteelMint assessed that low demand and emergence of new plants for Ferro Silicon are resulting in stability of prices, and the state of the Indian Rupee is going to be the determining factor in the near term Ferro Silicon price.

Exchange Rate: USD 1= INR 62.12