Indian ferro silicon prices remained stable w-o-w amidst moderate demand. Some major producers are reportedly sold out for the month but there is enough material on offer from the other smelters for supplying in the domestic market. This kept prices range-bound, with only minor fluctuations seen.
According to SteelMint’s assessment on 11 November, Bhutan producers offered at around INR 125,900/t exw while Guwahati producers’ prices were at around INR 125,000/t exw.
Market highlights
- Due to moderate demand, producers are having difficulty in selling the material. As a result, there is an oversupply in the domestic market. Furthermore, the addition of some new ferro silicon plants in India has also increased inventory. This has made producers refrain from hiking their offers amid selling pressure.
- Steel mills are also under inventory pressure because of weak demand. As a result, small steel manufacturers avoided booking large quantities at current offers. This resulted in moderate demand for ferro silicon in the spot market, and kept prices stable as well.
- However, some producers tried to maintain the offers at around INR 130,000/t exw. But they were under pressure from other ferro alloys prices (manganese alloys and ferro chrome). Moreover, bearish Chinese ferro silicon prices made avoid booking at higher levels, which pressured prices further.
Outlook
According to the current steel market scenario, a rise in ferro silicon prices is unlikely in the near term.
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