Indian ferro silicon prices fell marginally w-o-w due to weak demand, as many domestic steel mills held back from booking material due to higher ferro silicon prices.
According to SteelMint’s assessment on 16 September, ferro silicon producers were offering at around INR 142,000-145,000/t exw from both Guwahati and Bhutan.
Most consumers speculated that the prices might fall further. Furthermore, domestic offers were still higher than imports. As a result, slow buying interest was seen which resulting in buyers feeling the pressure to sell.
A few key buyers, however, booked bulk material on monthly inventory basis due to production cycle delays that are more expensive than holding purchase for low-priced raw material.
On the contrary, some Bhutanese producers held offers following an increase in electricity tariff that may trigger a rise in ferro silicon prices. As a result, the cost of production will rise, but the selling price will be determined by the market, according to sources.
China’s market overview:
The weekly price of Chinese ferro silicon (75%) in Inner Mongolia inched up marginally by RMB 100/t w-o-w to RMB 8,100/t exw-Inner Mongolia. Domestic ferro silicon prices were largely stable this week, rising slightly across provinces thereby indicating a mild recovery. Factory quotations were relatively high as a result of the increase in initial cargo prices and higher-than-expected pricing by the large steel mills.
However, futures prices remained stable with a marginal correction of 1% to RMB 8,048/t on 16 September compared to 9 September for November deliveries. The correction in futures changed the overall situation, and market participants are cautious about demand.
Outlook
Buyers are currently interested in imported material, which may reduce demand for domestic material and drive down ferro silicon prices in the coming weeks due to sluggish demand.
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