Indian ferro silicon prices dropped significantly by around INR 12,000/t w-o-w owing to sluggish demand. Meanwhile Bhutan’s producers also reduced their offers to attract long term business.
According to SteelMint’s assessment on 5 May, Bhutan’s producers were offering at around INR 144,000-145,000/t exw while Guwahati-based smelters were following suit.
Domestic ferro silicon demand is still weak post the reduction of prices. A few buyers are still in wait-and-watch mode in anticipation of further reduction in prices. Some buyers have reduced their ferro silicon requirement amid production cuts owing to power outage.
In addition, ferro silicon prices are in a downtrend worldwide due to poor demand. This also forced producers to reduce prices to maintain parity with international offers.
However, ferro silicon production curtailment in Guwahati owing to power curbs imposed by the Meghalaya Electric Corporation Ltd. is resisting producers from reducing offers further.
China’s market overview
Chinese ferro silicon (75%) prices fell by around RMB 100/t (USD 15/t) to RMB 11,400/t (USD 1,708/t) exw- Inner Mongolia amid down ward economy pressure owing to spread of epidemic. Meanwhile downfall in futures also discouraged the Chinese smelters to reduce their offers. In addition, some major steel mills reduced their purchase price and requirement owing to production cut. This has intensified negative market atmosphere. It is expected that ferrosilicon prices will mainly be stable in the near future, sources informed.
Ferro silicon prices fall in European market
European ferro silicon prices also plunged amid sluggish demand. Low demand and continuously arriving traders’ containers of ferro silicon attributed oversupply of material in European market. This discouraged sellers to reduce their offers.
US market receives poor demand
Ferro silicon prices in US market were also remain under pressure as few US buyers booked small quantity as most of the buyers are cautious for booking the material due to unclear future prices. This created weak demand, Sources informed.
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