Bhutan producers kept their ferro silicon offers unchanged at INR 126,000/tonne (t) exw, owing to the fact that majority of them sold their material for the month and had limited stocks to offer.
However, some Guwahati producers sold material at lower rate amid selling pressure. According to SteelMint’s assessment on 24 February, Guwahati’s ferro silicon offers were at around INR 124,000/t exw.
Domestic demand was moderate because market participants were waiting for March prices announcement.
Furthermore, buyers held their bulk bookings in anticipation of a price correction in the near-term. Buyers were not ready for bulk bookings due to an under-pressure steel market.
China market overview
China’s domestic ferro silicon prices fell slightly this week by around RMB 250/t. Offers of ferro silicon hovered (75%) around RMB 8,000 /t ($1,155/t) exw-Qinghai and Shanxi. Steel mills’ bidding prices performed poorly. The market lacked favourable support factors, and thus the decline in prices gradually slowed. These developments can be attributed to market expectations for a drop in coal prices, as well as a possible fall in electricity and semi-coke prices.
Outlook
Market participants anticipated minor fluctuations in the near term. However, it is expected that there will be strong demand in the coming days following the announcement of new prices from Bhutan, sources said.
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