Ferro Silicon prices in Bhutan and India have corrected by INR 3,500-4,000 /MT W-o-W
Sources conveyed a major correction in the Ferro Silicon market. Owing to the demand and supply imbalance and stock piling, Bhutanese producers have cut their offers substantially to garner some buying interest.
“Persistent limited buying from India is forcing producers to become increasingly aggressive on offers. Prices will most likely get worse”, remarked a producer source from Bhutan.
Ferro Silicon 70-75% grade is currently being offered at INR 65,000/MT (Ex-Bhutan) and INR 64,000/MT (Ex-Guwahati).
SteelMint learned from market sources that many end-users in India have stopped purchasing from Bhutan, as many new producers have sprung up in India (producers shifted their production to Ferro Silicon as demand for other Alloys was very poor). Thus reducing purchase cost and freight both by buying from India itself.
Prices are on the decline in the export market too. Ferro Silicon (70-75) is being offered at USD 1,200 CIF Europe.
“Considering that the demand from overseas consumers is sliding and suppliers are in a hurry to reduce inventories, prices will continue on a downward trend” stated a producer source.
SteelMint assessed that excessive supply of Ferro Silicon and low demand remains the main drag as market participants see more downside price-risk in the near-term.
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