Indian ferrosilicon demand is now quiet in the domestic market. Most of the buyers have booked enough material last month when the news of increasing international prices broke in the market. Thus, the demand was low in the past few weeks and now is intensified by the month-end stillness.
Currently, producers in Bhutan are offering in the range of INR 105,000-107,000/t and Guwahati producers are offering at INR 104,000/t Ex-plant. However, not many deals were recorded from Bhutan this week for the domestic market. On the other hand, Guwahati producers are mostly out of stock and few who are facing liquidity crisis reduced the prices by INR 2,000/t. Meanwhile, there are rumours that prices are also down to INR 98,000/t levels, but no deals are yet confirmed at these levels. Meanwhile, there is a good demand for exports from European countries. Despite severe container shortages, a deal was concluded at $1560/t FOB Kolkata for 72% grade by one of the major producers of ferrosilicon.
Outlook:
Producers believe that the prices might decrease in the coming weeks as the selling pressure intensifies in North-East India. Meanwhile, the steel demand is down which is another detrimental sign for the alloy manufacturers.
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