Indian Ferrosilicon prices have attained short term stability despite dull demand in the domestic market. However, the prices are expected to fall further as the higher-grade material from Malaysia is available at the Indian ports at much cheaper rates. Thus, domestic buyers are increasingly interested in imported material.
One of the major producers of ferrosilicon said that the prices in the domestic market need to be corrected to INR 75,000/t levels for deals to conclude actively and the correction in the prices up to INR 80,000/t should have been made much earlier rather than last week because now the imported material is available at much lower prices and the domestic producers will again be forced to reduce the prices.
Imported ferrosilicon from Malaysia for 75% grade is available at USD 990/t at the Indian ports, which is much lower than the current offers for 70% grade in the domestic market. SteelMint assessed the prices for HC 70% grade are at INR 79,000/t Ex-Bhutan and INR 80,000/t Ex-Guwahati. Meanwhile, the exports remained absent as the prices in the global market are much lower and offers from Indian and Bhutanese producers are not competitive.
Outlook
The prices for ferrosilicon is expected to fall further due to the selling pressure on the producers combined with the dull demand, liquidity crisis and cheaper imported material available.
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