Ferro Silicon prices remained unchanged as prices have found support at these levels. Market sources gave some hints of bullishness in the market as buying interest returns.

On account of increased demand from Europe and low production in Bhutan, Ferro Silicon producers in Bhutan continued to offer at stronger levels as they were confident of finding buyers. Ferro Silicon (70-75) is being traded in the range of INR 76,500 – 77,000 /MT (Ex-Bhutan). Exports markets have opened in Bhutan and producers are offering Ferro Silicon at around USD 1,265-1,270/MT FoB Kolkata.

[su_quote]A Bhutanese trader remarked, “I am seeing some optimism come back to the Ferro Silicon market in Bhutan as European players are back with some buying activity.”[/su_quote]

In line with the increased prices in Bhutan, Indian producers have also kept their prices unchanged. Producers in India are facing pricing headwinds; with the market set to register a potential oversupply. Current price of Ferro Silicon (70-75) is at around INR 74,000- 74,500/MT in Guwahati. Sources agreed that trade was limited, but seemed buoyant as inquiries were steadily rising from overseas buyers. Domestic demand for the material is low as the steel market is weak and sellers are in a wait & watch approach.

[su_quote]A trader from Meghalaya stated, “The domestic market is expected to remain subdued for the time being but we assume it will recover in February, 2014.”[/su_quote]

On the future outlook, SteelMint assessed that price to increase marginally in the coming months and demand to remain moderate. Market sources reported of enquiries in the export market. However, it is to be seen whether these inquiries can be converted into deals, and does it lead to increase in production levels which could cap the rise in prices.

Exchange Rate: USD 1= INR 62.77