Ferro silicon prices lost more ground as increased production coupled with low demand from end-users have forced Ferro silicon producers to cut their offers in order to conclude desired sales.
Facing continuous sluggish end-users’ demand from India, Bhutan-based Ferro silicon producers have again reduced pricesfor70-75% min by INR1, 000/MT this week, with deals now being concluded at INR 76,000/MT ex-Bhutan. The Export market is also quite dull, with some participants still out of the market. Currently, Ferro silicon is being offered at around USD 1,250/MT, FoB Kolkata.
“The market is really weak now and we are forced to reduce our selling prices but still there is no improvement,” stated a Bhutanese producer.
Indian Ferro silicon prices edged further down on the grounds of ample supply and curtailed demand. In Guwahati, 70-75% min is being offered at around INR 72,000-73,000/MT. Market sources reported that there is ample supply in the market as few Silico manganese producers have shifted to producing Ferro silicon.
A Meghalaya based producer remarked, “The supply situation needs to be normalized or else there won’t be any uptick in prices.”
The short-term expectation is for prices to remain under pressure and further downward price movement is still possible.
Exchange Rate: USD 1= INR 63
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