Ferro Silicon buyers get cautious due to shock waves created by a sharp drop in commodity’s prices.
SteelMint learned from market sources that a major Bhutanese producer has cut its offers significantly to entice buyers.
The above mentioned Bhutanese producer has reduced its prices to INR 93,500/MT, creating a panic in the market, as buyers are stunned with the sudden rise and are waiting to see if prices can go down further. However, other Bhutanese producers are discouraging such a sharp price drop, but have decided to cut their offers to INR 98,000/MT (Ex-Bhutan).
“This price is unrealistic as the global prices of Ferro Silicon are firm,” said a Guwahati based producer source considering the same as an act of market manipulation. Furthermore, he added that the Guwahati based producers have kept their prices unchanged at INR 1,01,000/MT.
“Though demand has been affected due to a sudden change in prices but most of the producers are booked out,” mentioned another source referring to the cautiousness of the buyers. The buyers will soon have to start making their purchase, he concluded.
Demand from overseas remains limited as well but the producers are firm on their offers at USD 1650/MT FOB Kolkata, as they expect a rise in inquiries from Europe very soon.
On the future outlook, market participants expect this situation to settle down soon and anticipate the Ferro Silicon prices to rebound soon.
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