Ferro silicon market has been witnessing limited demand since the past month, and producers were forced to lower their offer levels to conclude deals in the domestic market. Prices from Bhutan are revised to INR 77,500/t ex-works, and Guwahati is lowered to INR 78,000-79,000/t Ex-works.
The demand is low to moderate, with only small quantity deals taking place in the market. SteelMint has not learned of any bulk deals concluded this week. There is a rise in steel prices, and it might be a good sign for the ferro silicon market, commented a north-eastern ferro silicon producer. Meanwhile, a major producer from Bhutan shared similar sentiments and also stated that the international prices are too low to compete and conclude any export deals.
Plants in Bhutan are having regular dispatches now, meanwhile, producers from Guwahati are trying to keep their prices firm as their production cost is higher and any downward trend from here might bleed the producers. However, the overall demand remains tepid, and the producers are waiting for the demand to pick up.
Although, the international market is firm, yet Indian competitive edge is too low in front of Malaysian supplies, due to high power tariffs and higher raw material cost. In the near future, ferro silicon prices are expected to remain stable in line with a balanced demand and supply scenario.
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