Ferro silicon market is subdued amid slack demand and market conditions are unchanged with stable prices.
In spite of marginal slowdown in demand, Bhutan-based producers of Ferro silicon (70-75 grade) confirmed fairly stable market with largely unaltered prices and deals being concluded at INR 78,000/MT (ex-Bhutan). A Bhutanese producer reported that they are not presently offering material in the open market as they are in a contractual agreement with a company in India and can only supply to them for the time being.
There is moderate demand in the export market and deals were heard to be concluded from Bhutan for countries such as Italy & Germany in the range of USD 1,360-1,370 /MT CIF Europe.
“Demand from stainless mills is stable with most in no rush to buy,” stated a producer source.
In the Indian market, Ferro silicon prices are being pressured by lean demand. In Guwahati, Ferro silicon (70-75 grade) is being offered at around INR 76,000/MT. Indian producers are of the view that market would soon face a shortage of supply.
A producer source from Meghalaya remarked, “Slow stainless steel sales and a stasis market are contributing to slack trading activity. There is high possibility of prices to remain stable as the Indian currency is depreciating.”
Most market participants are of the view that the current price level is likely to remain unchanged for rest of the year because there is no apparent demand and supply, balancing the effect on pricing mechanism. SteelMint assessed that low demand has led to stable prices, although downfall in prices is not expected.
Exchange Rate : USD 1 = INR 61.9
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