Indian ferro silicon prices remained stable w-o-w due to moderate demand, with buyers hesitant to book the material at higher prices due to under pressure steel sentiments and stable raw material prices.
According to SteelMint’s assessment on February 10, Bhutanese producers were offering around INR 126,000/t, while Guwahati’s offer for ferro silicon was around INR 125,500/t. However, some Guwahati producers could be able to strike deals at slightly higher prices. Meanwhile, some Bhutanese producers are more focused on export.
Factors stabilising prices
- Moderate demand on bearish steel sentiments: Steel prices are under pressure due to a lack of buyers’ interest and a large amount of inventory held by producers. Meanwhile, small steel producers were avoiding booking large amounts of ferro silicon at high prices. As a result, ferro silicon demand on the spot market has been moderate, with ferro silicon prices remaining stable. Furthermore, bulk orders remained low, keeping prices stable. Due to falling steel prices, the majority of buyers reserved small quantities. SteelMint recorded approximately 1,300 tonnes of transactions this week.
- Raw material cost remains stable: Raw material price stability has also discouraged buyers from booking material at higher prices. However, Bhutan’s electricity tariff increased to around INR 3/unit from INR 2.6/t, but this has had little impact on production. This also compelled producers to maintain unchanged prices.
Outlook
Ferro silicon prices are expected to remain stable with minor fluctuations in the upcoming week.
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