India: Ferro Silicon Supply outstrips Demand

Ferro silicon prices were unchanged as there is ample supply of material; although emerging inquires were seen in the market.

Bhutan Ferro Silicon Demand recovering

SteelMint assessed Bhutan-origin Ferrosilicon 70-75% min is being offered at INR 65,000/MT. In the export market, Bhutanese producers are offering Ferrosilicon at around USD 1,120/MT FoB Kolkata.

In Bhutan, there is a rise of demand although producers have kept prices unchanged. Bhutanese producers stated that they have kept prices at the same level as there is excess supply in the market.

“Our business has improved quite a bit after a prolonged weak market. We’d rather stick to the present prices in order to destock and not raise our offers,” stated a Bhutan based producer.

Market sources stated that the supply glut would not help the market to improve and so prices would prevail at this level.

Production Increase in the Indian Ferro Silicon Market

Output in the Indian Ferro Silicon market has increased and producers are offering aggressively. SteelMint assessed the current price for grade 70-75 is INR 64,000 /MT (Ex- Guwahati). Indian producers are of the view that persistent oversupply of the material is pressurizing the market.

A producer from Meghalaya remarked, “There might be a little bit of recovery in demand but now issues arising from abundant supply are approaching due to which the market is pressurized.”

Looking at the present market condition, market participants believe that it may not be long before the market is seen recovering and Ferro silicon prices increasing before stabilizing.

Vizag Steel’s Global Tender for 5,000 MT Ferro Silicon Purchase

Visakhapatnam Steel Plant, one of the major Steelmakers issues a global tender to purchase 5,000 MT Ferro silicon conforming to grade FeSi-73 Al-15, in order to meet operational requirement of its plants.

Quotations will be accepted till 25 May’15 at 10.30 hrs.

On 24 Apr’15, the company issued another global tender to procure 600 MT Ferro Silicon with technical bids to open on 22 May’15.

Exchange Rate: USD 1 = INR 63.5