A healthy trading activity of Ferro Silicon has created optimism among its producers.
The Indian and Bhutanese producers have benefitted substantially as imports of Ferro Silicon have been negligible in recent days. A healthy demand has been witnessed by the producers of the aforementioned regions.
“We are holding very limited stock owing to constant high demand,” said a producer source referring to the increasing number of inquiries. Moreover, he also added that supply has been tight as most of the producers are low on inventory.
SteelMint assessed Ferro Silicon offers remain unchanged at INR 86,000/MT (Ex-Guwahati) and (Ex-Bhutan). However, another producer source hinted that prices may correct upwards to INR 87,000/MT in the coming week, as demand is comparatively higher than the supply.
In line with falling Ferro Silicon offers from China, the Bhutanese producers have also lowered their export offers to remain competitive and garner greater buying interest. The Ferro Silicon export offer is assessed at USD 1400/MT FOB Kolkata.
On the future outlook, sell-side participants are likely to elevate their offers in view of healthy demand and a limited supply of the Alloy.
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