India: Ferro Silicon Prices Slide on Persistent Low Demand

The Ferro Silicon producers reduced offers, on the back of inventories piling up with producers and supply outstripping demand.

Ferro Silicon offers were substantially lowered by a major producer in Bhutan to induce greater buying interest, as selling pressure on the producers grows. The current market scenario is reflective of the slowdown in the Indian steel industry.

“The market is going through the throes of uncertainty and producers are selling at various prices way lower than the current levels,” a producer said, citing deals concluded at low prices.

SteelMint learned that buyers are cautious as prices keep falling.

The current price of Ferro Silicon (grade 70-75%) is assessed at INR 82,000/MT (Ex-Bhutan) and INR 83,000-83,500/MT (Ex-Guwahati). However, most deals have reportedly been concluded at INR 83,000/MT.

“Prices are expected to increase in the near term, and this is the absolute bottom,” said a producer.

However, demand from overseas markets seems non-existent and current export offers are assessed at USD 1,270/MT (Ex-Kolkata).

Demand for the commodity has not picked up, and in the near future, prices are likely to be under pressure but nobody expects a sharp fall from here.