Indian Ferro Silicon offers corrected downwards despite constant demand in the market.
A sharp fall in Chinese Ferro Silicon prices as market participants there have lowered their offers, and expect a further downfall, as it is generally the case that prices go down before the Lunar New Yera holidays. This, in turn, has created an overall bearish sentiment in the global market and buyers are negotiating for lower prices. However, the demand for the commodity in India has been observed to be constantly healthy yet its prices have dropped.
“The market has gone speculative over Chinese prices,” said a source discussing the present Ferro Silicon scenario. A few major Ferro Silicon producers also brought down the market standard price by lowering their offers to entice buyers, he added.
Another source remarked that the Chinese Ferro Silicon market does not define the price of the commodity in India.
SteelMint assessed Ferro Silicon offers at INR 1,05,000/MT (Ex-Guwahati) and (Ex-Bhutan), while some deals were also heard to have been conducted below the aforementioned price.
Demand from overseas witnessed a sharp rise, especially from Europe, as they returned back to the market after the holidays. The Bhutanese producers seem to have benefited the most as Europe has imposed anti-dumping duty on Chinese Ferro Silicon, and Malaysia being booked for long-term contracts with Japanese and Korean companies.
Export offers are assessed at USD 1,900/MT FOB Kolkata as the producers are confident of finding acceptance on the same.
On the future outlook, Ferro Silicon offers are expected to remain stable but market participants are confident that prices may bounce back very soon, after getting a clearer direction.
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