Ferro Silicon prices witnessed a downward correction despite relatively healthy trading activities.
“Most of the producers are low on inventory and there is an over-demand situation in the market,” said a Guwahati based producer. However, they have reduced their offers to maintain parity with Bhutanese prices.
SteelMint learned from a source that one of the Bhutanese Ferro Silicon producing giant has reduced their offers to garner greater buying interest as they were high on inventory. Hence, other Bhutanese producers have had to also lower their offers to remain competitive.
SteelMint has assessed Ferro Silico offers at INR 84,000/MT (Ex-Bhutan) and INR 85,000/MT (Ex-Guwahati).
Realization of Ferro Silicon in the overseas market is heard to have lost its momentum. However, most of the producers are already booked and will be unable to supply. A producer source told SteelMint that they are currently supplying the booked quantities and are not entertaining new inquiries. The export offers remained unchanged at USD 1400/MT FOB Kolkata.
Another producer commented on the current market conditions and called this phenomenon as an unjustified event, as demand is healthy but participants are acting in line with the overall correction in the Ferro Alloy market in India.
On the future outlook, considering a healthy demand for the commodity in the market coupled with low level of inventory, the prices are expected to rebound in coming 2-3 weeks.
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