Indian ferro silicon prices corrected marginally w-o-w after a major Bhutanese ferro silicon smelter reduced its offers to INR 125,000/tonne (t). However, some deals from Guwahati were concluded at higher prices on special terms. Demand in the domestic market was a little slow this week.
As per SteelMint’s assessment on 4 November, Guwahati producers started offering at around INR 125,000-126,000/t on exw basis, down by INR 5,900/t w-o-w.
Market highlights
- Many major buyers stocked up inventory last week as dispatches from Bhutan became increasingly uncertain due to a delay in BIS certificate extension. Furthermore, the start of a new month increased the inventory level. As a result of the high inventory level, combined with the weak demand, ferro silicon prices fell.
- Furthermore, buyers continued to believe that prices would fall leading to low demand. As a result of the selling pressure, prices fell.
- Furthermore, steel sentiments were unfavourable due to low buying interest. Buyers who had reserved their material were not interested in lifting. This attributed to a large inventory. Steelmakers are also less likely to book higher-priced material. This also resulted in lower ferro silicon prices.
Outlook
Smelters are optimistic that ferro silicon prices are unlikely to fall further now that Bhutan smelters have begun sending material, following their BIS certified renewal.
However, some major Chinese tenders will be completed in the coming days. As a result, most market participants are anticipating these to provide a clearer market direction.
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