India: Ferro silicon prices correct on low demand

Indian ferro silicon (70%) prices were further corrected by INR 900/t w-o-w due to weak demand.

According to SteelMint's assessment on 9 June, Indian ferro silicon prices were at INR 116,800/t exw-Guwahati, while Bhutan's offers stood at around INR 116,600/t exw, down by INR 400/t w-o-w.

Factors affecting prices

Sluggish domestic demand: The north eastern market typically follows Bhutan's pricing, which was INR 117,000/t exw at the beginning of this month. However, manufacturers were unable to hold prices at that level since demand was low and purchasers anticipated additional price drops. As a result, prices fell, and some deals were struck at INR 115,000/t exw as well, according to sources.

Stainless steel market impact: Domestic stainless steel prices for 304 and 316 grades declined by INR 1,000/t this week, according to SteelMint's assessment on 6 June. As a result, stainless steel producers were unwilling to stock raw materials in bulk amid unfavourable market sentiments.

Global scenario: Chinese ferro silicon (72%) prices stood at RMB 6,895/t (USD 967/t), down by 2.27% w-o-w. Because producers were making less profits, production was reduced in the primary producing regions of Inner Mongolia, Ningxia, and Gansu. The inventory was also sufficient, which may contribute to additional price reductions.

Outlook

Because of the current market conditions and decreasing export demand, prices are anticipated to remain under pressure in the near future. An unexpected boost in demand may cause prices to rise, but is highly unlikely in the foreseeable future.