India: Ferro silicon prices fall marginally on weak demand

India's ferro silicon prices dropped marginally due to weak domestic demand as participants (buyers/sellers) are waiting for the major tenders to get concluded for a clear price direction.

According to SteelMint's assessment on 13 Jan'22, prices in Guwahati fell by INR 1,500/tonne (t) w-o-w to INR 158,000/t exw for Si-70% grade while those in Bhutan are at around INR 159,600/t exw. Meanwhile, around 1,000 t of deals have been recorded by SteelMint this week.

Highlights

• Ferro silicon producers witnessed limited inquiries this week as most of the buyers had already purchased the material during end Dec'21-early Jan'22. Also, buyers were not ready to book the material at higher prices. Consequently, producers had to reduce their offers to get some bookings done.
  
  
• A major buyer was heard to have booked ferro silicon at around INR 150,000/t on an exw basis, which softened sentiments.
  
  
• Many producers are currently booked for the month. A few are waiting for major tenders as they prefer to cater only through tenders, while the rest are reducing their offers to meet their monthly targets.
  
  
• Furthermore, range-bound steel prices also prevented steel makers from booking the material at higher prices, resulting in a drop in ferro silicon prices.
  
  
• In addition, some major tenders are to be concluded in the coming days. Hence, most market participants are looking forward to these to get a clear market direction.
  
  

Outlook
The possibility of a price rise is difficult to predict since it all depends on the upcoming reverse auction and potential demand improvements.
"Reverse auctions will determine the ferro silicon price trend in the coming weeks," major producers said.