A perfect storm of swelling supply and sinking demand continued to thrash the Ferro Silicon market.
Producers from Bhutan have lowered offers by INR 2,000/MT due to weak demand, with new deals concluding at INR 69,000/MT (ex-Bhutan). Prices have fallen sharply due to more than adequate supply and lower offers from traders. No export deals were heard; export offers from Bhutan are reportedlyclosed. There is no demand at all from the international buyers.
A Bhutan based producer remarked, “Prices are already so low and are challenging some producers’ cost curves.How much lower can they go? Prices need to stop going down so quickly at least for a while.”
Similarly, Indian Ferro Silicon prices plunged down by INR 1,500-2,000/MT and it is now being offered at INR 67,000-67,500/MT. Indian producers are of the view that there is an overflow of supply of Ferro Silicon as production capacity has expanded in India and this is exerting pressure on prices. Production has increased because Silico Manganese and Ferro Manganese producers have shifted to make Ferro Silicon.
“The demand situation is really not usual. Our sales are also down in recent days. There really is very little confidence among buyers and as a result sales are not doing well. It’s hard for a recovery to take place. I think the market is quite well-supplied so it is a buyer’s market for sure,” stated a producer from Meghalaya.
SteelMint assessed that overall market sentiment was dampened by expectations of further falls in prices.
Indian Ferro alloy manufacturer Steel Authority of India (SAIL) tender for 10,620 MT Ferro Silicon is still active.
Exchange Rate : USD 1 = INR 62.37
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