The Ferro Silicon market turns gloomy, with inventories piling up with producers and supply outstripping demand.
Despite regular demand, Ferro Silicon offers were substantially lowered to induce greater buying interest.
Asked why prices were being lowered despite a steady stream of inquiries, a source said: “The current market scenario is reflective of the slowdown which is a seasonal characteristic.”
“The market is going through the throes of uncertainty and producers are selling at various prices way lower than the current levels,” a producer said, citing deals concluded at low prices.
SteelMint learned that buyers are cautious as they anticipate further fall in prices.
The current price of Ferro Silicon (grade 70-75%) is assessed at INR 88,000/MT (Ex-Bhutan) and INR 88,000/MT (Ex-Guwahati). However, deals have reportedly been concluded even at INR 86,000/MT.
“Demand from overseas is expected to increase in the near term,” said a producer beaming optimism. However, current export offers are assessed at USD 1,400/MT (Ex-Bhutan).
Demand for the commodity has not picked up and, on the future outlook, prices are likely to be under pressure unless demand picks up.
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