The ferro silicon market witnessed stable prices this week with low demand from steel mills.
Bhutan based producers of ferro silicon continue to keep prices firm. Grade 70-75 is being offered at around INR 66,500-67,000/MT (Ex-Bhutan). Export offers in the market remain unaltered and currently ferro silicon is being offered at USD 1,100/MT FoB Kolkata, but in Rupee terms it is much higher, as the Indian Rupee (INR) has depreciated further and is trading at over 65.5 per USD. However, foreign buyers showed a reluctance to purchase Bhutanese material.
“Demand has been limited for the past one or two months and there has been no real activity for such a long period”, stated a Bhutanese based producer.
Similarly, the Indian ferro silicon price is also at the same level. Grade70-75% is being offered at INR 65,000/MT (Ex-Guwahati), unchanged W-o-W. With persistent low demand in the Indian ferro silicon market, there has been a major production cut and few plants are also not operational at the moment.
“Consumption is very low by steel mills now and requirements from the foundries are not enough to keep the market steady”, remarked a producer from Meghalaya.
SteelMint learned that most market participants hold a pessimistic view towards the future market trend. Steel demand is not strong enough to support any gains in the ferro silicon price level in the near-term.
Exchange Rate : USD 1 = INR 65.5
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