Indian ferro silicon prices remained unchanged w-o-w due to a slower-than-expected recovery in demand.
According to SteelMint’s assessment on 17 February, a Guwahati-based producer was offering at around INR 125,500/t exw with marginal fluctuation for three consecutive weeks. Bhutan’s offers remained firm at INR 126,000/t from early February.
Factors keeping prices firm
“Domestic ferro silicon has recently appeared range-bound with moderate market sentiment,” an industry insider revealed.
Furthermore, the global drop in ferro silicon prices due to slow buying discouraged buyers from booking the material at higher levels.
However, some Bhutanese producers were focusing on the overseas market, primarily in European countries. These producers shared that they are receiving good inquiries from them, as offers from China were not viable due to anti-dumping duties imposed on European countries.
China’s market overview
This week, ferrosilicon (Si-75%) prices decreased in Qinghai, Inner Mongolia, by RMB 100/t to RMB 8,100/t exw. This week’s domestic ferro silicon prices trended downward. After the steel mill bidding was released, the downstream demand side was less active. This led to an insufficient output release. The steel mill’s own inventory was small. On top of that supply was slightly tight, so manufacturers held goods and were hesitant to sell. In the short term, the prices of ferro silicon are expected to be stable.
Outlook
Market participants expect no further decline in the domestic market if demand from European countries continues to rise. According to sources, this would create a shortage in the domestic market and support prices.
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