With end-user demand being low for some time now, the market is consequently depressed as Ferro silicon prices came under pressure with sales being concluded at lower levels.
Bhutan Ferro silicon prices fell this week as steel production cut exerted downward pressure. Current offers for 70-75 grade are in the range of around INR 74,000-74,500/MT (ex-Bhutan). Export offers from Bhutan were not heard as there is an absence of bids and deals.
Bhutanese producer reported that prices have been declining as demand has been nearly absent. SteelMint assessed that there is too much material on the ground and the steel market outlook has taken a turn for the worse.
“I think we will be seeing weak demand and depressed pricing for the foreseeable future”, stated a Bhutan based producer.
In the Indian Ferro silicon market, prices have also declined as most buyers did not appear too enthusiastic about procurement. There was visibly less demand in the market with buyers aware that there was more than sufficient supply, adding to purchase hesitation. Currently, Ferro silicon is being traded at around INR 71,500- 72,000/MT (ex-Guwahati).
“Ferro silicon market to remain weak in this month, with oversupply gradually being absorbed and demand growth slowing”, stated a producer based in Meghalaya.
Overall buying sentiment still appeared weak as participants saw more downside price risk in the near-term, with declining prices and low demand remaining the main drag.
Exchange Rate : USD 1 = INR 61.8
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