Spot trading of grade 70-75% ferro silicon remained thin amid weak demand, while offers were unchanged but under pressure.
The Bhutanese spot 70-75% ferro silicon assessment was made at INR 64,000/MT, unchanged W-o-W. Producers in Bhutan report of very weak demand from Indian companies as the Indian steel market sentiment is down.
A producer from Bhutan reported that there is no buying from European buyers as the European market is facing a potential supply glut. “There is nothing much in the market as there is no demand. I have no inquiries and done deals. The demand in the export market also remains under immense pressure,” said the producer.
Malaysian origin Ferro Silicon is arriving at various Indian ports like Kolkata, Chennai and Vizag consistently every month. For Silicon (Si) content 70% min., CIF price is in the range of USD 960-970/MT in the month of November. Ferro silicon imports in India are duty-free from Malaysia, in accordance with the trade agreement singed by the Government for AESEAN countries w.e.f 1 Jan 2015.
Indian Ferro Silicon Pricing Steady on Limited Buying
Indian ferro silicon market remained unchanged as demand for the material continued to waver amid a bearish steel outlook.
SteelMint assessed grade 70-75 is being traded at around INR 62,000/MT (Ex-Guwahati).
Market sources are of view that many producers will now have to close down furnaces on weak demand as they do not have the cash flow to sustain production.
“I don’t see any reason ferro silicon prices to go up. Oversupply is the reality and production cuts are very necessary,” stated a producer from Meghalaya.
It is extremely difficult for producers to do business, hence offers have to competitive. On the future outlook, majority market sources expected prices to soften amid inactivity.
Exchange Rate: USD 1 = INR 66.5
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