Indian ferrosilicon prices had witnessed an uptick during the last week. However, prices are now gradually coming down amidst slow demand and better supply in the domestic market. The market seems quiet now as the buyers expect the prices to fall further. The market is also pressurized and producers might lower offer for further bookings.
The prices are hovering around INR 107,000/t both in Bhutan and in Guwahati. Meanwhile, the exports remained unappealing due to better prices in domestic market and severe container shortage. However, this shortage of container proved to be a boon for Indian producers as they could increase the prices without any threat of increased imports.
The prices in the international market also remain on the higher side and an export deal was reported at $1550/t for Japan, which is higher than the domestic market. Meanwhile, in China, the ferrosilicon prices are on an upside as electricity curtailments in the major producing regions is intense and affecting the supply situation.
Major steel producers of India anticipated beforehand that the prices of ferrosilicon are set to increase and will peak in January. Thus, they booked sufficient materials beforehand and now have enough stock which is running the demand dry. The prices in domestic market are also affected by downstream finished steel prices due to which buyers are reluctant to buy alloys at higher prices.
Outlook:
Producers believe that the prices might decrease in the coming weeks as the selling pressure intensifies in North-East India. Meanwhile, the steel demand is down which is another detrimental sign for the alloy manufacturers.
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