Ferro silicon prices have fallen as bearishness prevailed among most sources, who cited weak demand and oversupply as a large downward driver.
Producers from Bhutan have lowered mainstream offers by INR 1,000/MT due to weak demand with new deals concluding at INR 77,000/MT (ex-Bhutan). Looking at fall in sales volumes, Bhutan based Ferro silicon producers have decided to reduce their offers to consummate trade. Price direction in the export market remained stable as there is less activities because of seasonal year-end holiday lull. Deals were concluded from Bhutan for countries to Italy & Germany in the range of USD 1,360-1,370 /MT CIF Europe.
“Activities are very sluggish and the few enquiries received are for minimum tonnages,” remarked a Bhutanese source lamenting on lack of business.
Indian Ferrosilicon buying activities are sluggish owing to weak demand from end-users. In Guwahati, Ferro silicon of 70-75 grade is being offered at around INR 75,000-75,500/MT. Indian producers reported falling prices of other bulk Ferro alloys has impacted the Ferro silicon market and hence prices have gone down.
“Weak demand from steel mills continue to be a factor for pushing prices down and cash flow concerns added further pressure,” sated a producer from Meghalaya.
SteelMint assessed that currently there is a lull in bookings and so prices should remain stable in the near-term.
Exchange Rate: USD 1 = INR 62
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