Indian ferro silicon prices fell by INR 4,550/tonne (t) w-o-w as buyers bargained hard amid the sluggish steel market.
According to SteelMint’s assessment on 22 July, offers of Bhutanese producers were at around INR 146,100/t exw while Guwahati producers offered at around INR 144,700/t exw.
The declining steel and bulk ferro alloy markets made buyers cautious about booking the material at higher prices. Therefore, buyers bargained hard to book the material, resulting in lower prices w-o-w.
Buyers also refrained from booking bulk quantities on expectations of a further decline in prices. This week, SteelMint recorded around 2,000 t of deals. Limited trade forced smelters to reduce their offers to attract buying interest.
In the meantime, stainless-steel production remained restricted due to high inventory and weak demand, resulting in a decrease in ferro silicon’s demand and its prices.
Chinese market overview
China’s ferro silicon (75%) prices dropped by RMB 350/t ($52/t) w-o-w to RMB 8,100/t ($1,198/t) exw-Inner Mongolia. Meanwhile, ferro silicon futures on the Zhengzhou Commodity Exchange (ZCE) for September 2022 delivery fell by 6% w-o-w to RMB 7,606/t ($1,125/t) on 22 July 2022.
Outlook
Ferro silicon prices are expected to remain range bound in the near term as steel prices are under pressure amid weak sentiment. Further, Indian buyers are optimistic and expect prices to continue declining.
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