India: Ferro Silicon Producers Lower Offers Despite Steady Demand

Ferro Silicon producers have lowered their offers to encourage buying as demand remains constant.

Ferro Silicon prices are observed to ease as rising competition among the traders is pulling prices down.

“A competitive nature of market participants has proven to be detrimental to the commodity’s price trend,” said a producer source expressing both concern and confusion over the matter.

SteelMint learned from a producer source that one of the Bhutanese Ferro Silicon producing giant has again reduced their offers to garner greater buying interest. Hence, other Bhutanese producers have had to also lower their offers to remain competitive.

A similar scenario has also been claimed by a Guwahati based producer who asserts traders are pulling the market down by offering at lower levels.

Ferro Silicon offers are assessed at INR 1,03,000/MT (Ex-Bhutan) and INR 1,04,500/MT (Ex-Guwahati).

Demand from overseas has been strong especially from Europe. A deal was heard to have been concluded at around USD 1,730/MT FOB Kolkata.

Currently, the European market is highly dependent on Indian and Bhutanese origin commodity as Malaysia has limited material to offers and a global shortage of Ferro Silicon persists.

On the future outlook, Ferro Silicon prices are expected to remain stable while some market participants anticipate that an upward correction is very unlikely.