Indian Ferro Silicon demand has been weak for a long time now. Most producers in Bhutan have concluded very few deals in the past three months, creating a huge liquidity crisis. Thus, the producers in Bhutan were forced to lower the prices to conclude deals. Offers from Bhutanese suppliers decreased to INR 80,000/MT. However, even after the hefty fall of INR 5000/MT on a weekly basis, producers are yet to fetch better demand and trading activity remained dull. Meanwhile, in Guwahati prices have also corrected to INR 80,000/MT.
SteelMint learned from market sources that imports are taking place from Malaysia for 75% grade Ferro Silicon at USD 990-1000/MT. If the same is converted to Indian currency, it translates to INR 74,643 – 75,397/MT (1 USD= INR 75.40; 05 Jun 2020), which is much lower than the current domestic levels. Therefore, the manufacturers are wary of future corrections in the prices and are scrambling to liquidate stocks.
Future Outlook:
The prices in the domestic market may see further corrections due to dull demand and cheaper imports available.
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