India: Ferro Silicon Prices Remain Depressed amid Sluggish Steel Market

Indian Ferro Silicon prices are at bottom levels due to bearish Stainless Steel and Steel market condition. Many producers are trading at below their production cost in India to lower the inventory. A Bhutan based producer reported that they are in no profit no loss situation with such rates of Ferro Silicon.

The demand from India which is the major importer for Bhutan is also sluggish owing to market conditions. Demand from export market is absent. Even with reduced prices, there are no inquiries from the export market, which has put the producers under selling pressure.

Producers from Bhutan are offering Ferro Silicon at INR 69,000/MT which is unchanged on W-o-W basis. However, a few deals were also heard to be concluded at INR 68,000/MT. Ferro Silicon prices in Guwahati is in the range of INR 68,000 - 69,000/MT. In the export market, prices remained unchanged for Ferro Silicon (75%) at USD 1140/MT FOB Kolkata. However, no deals were concluded despite such lower prices.

On the future outlook, producers remain pessimistic about any changes in the upward movement of price. However, producers are also expecting prices not to fall further than present levels other-wise; temporary shut-down of plants can't be ruled out.