Indian ferro silicon prices inched down owing to slow procurements as buyers negotiated hard.
According to SteelMint’s assessment on 14 October, ferro silicon offers were at around INR 134,000/t exw-Guwahati, while Bhutan’s offers dropped by INR 2,500/t w-o-w to around INR 132,500/t exw.
Traders were hesitant to buy because they expected prices to fall further. Meanwhile, due to slow buying, only 1,600 tonnes of deals were recorded this week. However, some manufacturers were out of stock because they were too busy catering to government tenders.
In addition, end-users floated ample inquiries but not many were translated into deals as the market awaited further price falls. This pressurised smelters to inch down the prices.
China market overview
Chinese ferro silicon (75%) prices improved by RMB 550/t ($76/t) to RMB 8,950/t ($1,244/t) exw-Inner Mongolia. This week, the price of domestic ferro silicon increased. Despite the disruption caused by the pandemic in some production areas, the market’s willingness to support prices remains evident. Furthermore, the price of electricity in Qinghai’s main production areas has fluctuated, and some green electricity subsidies will be cancelled, as will the electricity fee, which will drive up ferro silicon prices. Ferro silicon prices are expected to rise in the near future.
Outlook
Ferro silicon prices are expected to remain under pressure due to weak domestic demand, with Indian buyers waiting for prices to fall further, according to sources.
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