Ferro Silicon producers are observed to have lowered their offers in view of tough competition and backed by consistent demand.
Demand for the commodity has been constantly high, whereas, few sellers were heard to have concluded deals at a lower level, hence pulling the prices down altogether.
A source claimed that traders have old stock of the commodity, which was purchased at low prices, and they are selling the same at slightly lower levels irrespective of its current offers in the market. He further added that producers are low on inventory but are forced to lower their offers to stay competitive.
Imports of Ferro Silicon on any Indian ports have not been heard about yet, which can be considered beneficial for the domestic producers as a support to their offers. “Purchasing from the domestic market will be a feasible option rather than importing at high prices, said a source.
SteelMint assessed Ferro Silicon offers at INR 1,04,500/MT (Ex-Bhutan) and INR 1,05,500/MT (Ex-Guwahati).
Demand from Europe has spiked after their holidays, encouraging the Bhutanese producers to raise their offers. Export deals are confirmed at USD 1,730/MT FOB Kolkata as EU exempted India from anti-dumping duty, unlike China and Russia.
Offers from Malaysia is heard at USD 1,850/MT but they are mostly into long-term contracts with a few Asian countries and have little quantity left to export in the spot market. On the other hand, Russia has been exporting 70% grade commodity which is less preferred among the buyers.
One of the major European Ferro Silicon producers – Finnfjord, with monthly production of 4,000 MT, will be shutting down their operation due to maintenance and is likely to create a supply shortage in Europe, giving further impetus to Indian and Bhutanese exporters to raise prices.
On the future outlook, Ferro Silicon offers are expected to remain stable while a reducing inventory with the traders will decide the trend of the commodity in the near future.
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