Ferro Silicon producers have kept their offers unchanged amid improved demand while reflecting on a bullish sentiment prevailing in the the market.
“Previous few weeks were unyielding as we were unable to dispatch stock despite good demand. We have been receiving good amount of inquiries lately but are currently focused on delivering the pre-booked orders,” stated a Bhutanese producers carving out the reason for price stability.
Domestic producers are also observed to be positive on present Ferro Silicon demand and are expecting their market to remain unaffected by recent Bhutanese dispatch approval. Indian producers cited strong demand for Ferro Silicon in India, as steel production in India too is in full-swing.
SteelMint assessed the Ferro Silicon prices unchanged at around INR 70,500/MT (Ex-Bhutan) and INR 71,000-71,500/MT (Ex-Guwahati).
Akin to the domestic market, demand from overseas buyers also remained steady and so has its price. Export offer remains relatively unchanged at USD 1180/MT (FOB Bhutan). Europe stands out to be the primary market for Ferro Silicon exports on account of high demand from the region as market participants returned back from summer holidays, and the inherent need to replenish their inventory.
Spot offers for Chinese Ferro Silicon (75% grade) rose higher to USD 1,290-1,300/MT FOB China on tight supply. Quite a few plants that produced Ferro Silicon were shut down due to environmental issues. However, those plants still remain out of operations amid no news on resumption. This has led to available stocks in the country to remain low and higher prices. Also, Malaysian and Russian producers were heard not to be offering spot cargoes at present.
Market participants were observed to be bullish and are expecting Ferro Silicon prices to remain steady in near-term with high chances of an upward correction.
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