Ferro Silicon Prices unchanged as Market Lacks Activity

Ferro Silicon prices have found support at current levels, showing very little indication of change, with a lack of buying interest from Steel mills.

Ferro Silicon prices in India showed no signs of rising as there is ample availability coupled with limited demand for the material. Current price for grade 70-75 is INR 71,000 /MT (Ex- Guwahati). Sources said trading is constrained in the market, with buyers waiting on the sidelines for some market direction till the Finance Budget is announced.

“It is hard to say if the market will come back up soon. Rates have been under pressure as supply is in excess in the market,” remarked a Meghalaya based producer.

Bhutanese Ferro Silicon prices were also on the same level as last week on weak demand. Bhutan-origin Ferro silicon 70-75% min is being offered at INR 74,000/MT. There was an absence of deals, bids and offers in the export market as the international buyers were still not interested in purchasing the material.

A Bhutanese producer stated, “The steel industry still isn’t doing well globally , so raw material procurement managers are on a very tight leash.”

On the future outlook, demand could remain low in the near-term, and supply to remain in excess until the producers that had shifted their production to Ferro Silicon shift back – capping any significant upside in prices.

Exchange Rate : USD 1 = INR 61.7