India: Ferro Silicon Prices Drifts Down on Oversupply

Ferro Silicon prices slip as the market becomes oversupplied due to lackluster domestic and overseas demand.

"Demand from domestic market is low but constant and an oversupply of the commodity has forced the Bhutanese producers to offer at lower levels," said a producer source expressing his concern.

"Ferro Silicon is now subject to aggressive selling where various suppliers offer at lower prices to entice buyers," complained another producer.

SteelMint assessed Ferro Silicon offers at INR 93,500/MT (Ex-Bhutan), while Guwahati based producers refused to lower their prices and kept their offers unchanged at INR 95,000/MT. However, deals are heard to have been concluded at below the aforementioned levels.

Inquiries from the overseas seem to have evaporated with a few market participants claimed the same to be the outcome of US's trade war while others say it is seasonal.

Though export deals are not heard to have been concluded recently but exporters kept their prices unchanged at INR 1,530/MT FOB Kolkata.

On the future outlook, market participants are waiting for a Bhutanese Ferro Silicon producing major to reduce prices further.