Indian ferro silicon prices reverted to a five-month low, touching early-June, 2022 levels w-o-w, due to weak demand as buyers negotiated hard.
According to SteelMint’s assessment on 18 November 2022, Guwahati-based producers were offering ferro silicon Si-70% grade at INR 122,000/tonnes(t)-exw, down 2.4% from INR 125,000/t a week ago. Bhutan’s offers were almost stable at INR 125,000/t exw. However, some Guwahati-based producers sold material at lower prices amid selling pressure.
Market highlights
SteelMint observed weak ferro silicon demand at higher offers this week. Buyers were constantly attempting to lower prices as the stainless-steel market remained under pressure. Due to low domestic demand, producers reduced their offers and were able to close around 1,500 t of deals this week, according to SteelMint.
Additionally, the dull buying was attributed to an oversupply in the spot market. As a result, producers had to lower their offers.
Furthermore, due to low demand, ferro silicon prices are falling globally. This also compelled producers to lower their prices in order to compete with international offers.
China market overview
Chinese ferro silicon (75%) prices dropped by RMB 150/t w-o-w to RMB 8,550/t exw-Inner Mongolia and exw-Quinghai as assessed on 18 November, showing a downward trend. For the time being, no new industrial policy has been issued in the main production areas. There has been no new development to replace large outdated capacities in Inner Mongolia. The bidding volumes and price performance of steel mills were not high.
However, ferro silicon futures prices on the Zhengzhou Commodity Exchange (ZCE) inched up by 2% to RMB 8,612/t for January 2023 delivery.
Outlook
Ferro silicon prices are expected to remain under pressure in the coming week amid weak steel demand.
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