The ferro silicon market continued to decline, as growing availability of the material and weak steel performance eroded demand.
SteelMint assessed grade 70-75 at around INR 59,000/MT(Ex-Bhutan),down by 1,000/MT from last week prices. Sources said buyers shunned buying amid lackluster demand stainless steel demand. Meanwhile the export market has completely plunged with no buying from European countries.
Despite lowering offer levels sellers were not able to attract the buyers. Looking at the market condition a Bhutanese based producer reported, “Buy side participants are in no hurry to buy and are adopting a wait-and-see strategy, since most are confident that prices may fall again as there is ample supply available in the market.”
Sources said weak demand has lead to softening of prices, and further downfall in prices cannot be ruled out.
Ample Supply Drags down Ferro Silicon Prices
Domestic ferro silicon prices also trended downwards, as buying intent fell further on abundant material.
SteelMint assessed grade 70-75 at around INR 57,000/MT (Ex-Guwahati), down by 1,000/MT from last week prices. There is general expectation in the market that buyers have stopped purchasing as prices may weaken further. Producers said positive momentum to lift prices above current level was lacking, as steel market was also performing poorly.
The short-term expectation is prices of ferro silicon to remain under pressure and a further downward price movement is still possible.
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