Indian ferro silicon prices remained rangebound with only a marginal drop seen this week due to moderate demand.
According to SteelMint’s assessment on 24 March, ferro silicon (70%) prices were hovering at INR 117,500-120,000/t exw from the major producing hubs of Guwahati and Bhutan, with 1,000 t of transactions heard this week.
However, selling pressure due to moderate demand forced some small producers in Guwahati to float offers at lower levels of around INR 115,000/t exw.
Steel mill demand has shrunk due to lower operation rates, and steel producers have reduced output m-o-m in March due to sluggish demand. Due to the limited supply, this had a direct impact on ferro silicon prices.
Meanwhile, selling pressure and cash flow issues led to some small producers booking material at lower prices compared with current spot offers. This also compelled major producers to reduce their offers marginally in order to maintain long-term business relations.
Furthermore, raw material prices remained rangebound this week which influenced buyers to negotiate aggressively and book at lower levels.
China market overview
China’s domestic ferro silicon (75%) prices remained firm at around RMB 8,000 /t ($1,155/t) exw Qinghai and Shanxi. This week, steel mills did not purchase, market terminal transactions were lower, and ferro silicon remained in oversupply. Manufacturers took their time getting to the warehouse in March. In the short term, the market is expected to remain weak but stable.
Outlook
Ferro silicon smelters are optimistic that upcoming tenders from the steel industry would create some supply shortage in the domestic market and lend support to ferro silicon prices.
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