Indian ferro silicon prices inched down marginally by INR 1,300/t w-o-w owing to slow buying interest.
According to SteelMint’s assessment on 17 March 2023, Indian smelters were offering ferro silicon (70%) at around INR 118,700/t exw while Bhutan’s offer was at around INR 119,600/t exw.
Market highlights
Indian ferro silicon demand remained moderate as there was speculation about further drop in prices. This resulted in a marginal drop in prices amid selling pressure.
On the other hand, Bhutan’s producers were unwilling to reduce their offers due to hike in electricity tariffs, which protected prices from a sharp fall.
Furthermore, an uncertain market trend compelled buyers to book steel in bulk. This can be attributed to limited operations by mills this week further impacting ferro silicon demand.
In addition, raw material prices (quartz and LAMC) were majorly stable this week. As a result, buyers were not interested in booking the material at last week’s prevailing prices.
China market overview
The Chinese ferro silicon market remained almost stable with marginal fluctuations w-o-w as there has been no positive feedback on ferro silicon prices. However, the demand side has remained weak. According to SteelMint’s assessment on 16 March, ferro silicon (75%) prices in China were hovering at around RMB 8,000/t exw Inner Mongolia.
In addition, steel sales increased and prices fell in mid-March, according to sources. As far as costs are concerned, support for ferro silicon declined. Some factories have recently reduced production and opted to shut down for maintenance work. Hence, in order to maintain price parity, Indian ferro silicon prices also decreased this week.
Outlook
Indian ferro silicon prices are likely to remain stable with marginal fluctuations in the near terms amid moderate demand.
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