Indian ferro silicon prices remained stable w-o-w amidst moderate supply-demand conditions. Major sellers, on the other hand, have already reserved large quantities through tenders held by one of the largest steel producers last week. However, there was enough material on the market.
According to SteelMint’s assessment on 25 November, Guwahati-based producers were offering at around INR 122,000 – 123,000/t exw while Bhutan’s offers were almost stable at INR 125,000/t exw.
Market highlights:
- Steel mills were facing high inventory pressure due to weak demand at higher prices. As a result, small steel manufacturers are avoiding booking large quantities of ferro silicon at high prices. This has resulted in moderate demand for ferro silicon on the spot market, as well as stable ferro silicon prices.
- Moreover, bulk orders remained muted, keeping prices stable. The majority of buyers reserved small quantities, anticipating further declines in a bearish ferro alloys market. This week, SteelMint recorded around 1,000 t of transactions.
- Furthermore, as a result of selling pressure, some producers sold material at lower prices. This also kept prices stable and prevented them from rising.
- In addition, last week, Steel Authority of India Limited (SAIL) completed its procurement tender for 13,462 t of ferro silicon (70%) for its six different plants at an L1 price of around INR 124,541/t on a weighted average landed cost net of Input Tax Credit. Following that, major ferro silicon producers have been reserved to supply major steel producers. This prevented further price increases.
Outlook
Ferro silicon prices are expected to remain stable with minor fluctuations next week.
Leave a Reply