India: Ferro Silicon Prices Hold Firm on Rising Demand

With healthy demand for Ferro Silicon, its offers remain firm while producers were observed to be of a bullish view.

"We are satisfied with the present realization value as demand equals supply," said a Guwahati based producer discussing the present Ferro Silicon market in India.

However, the Bhutanese producers are finding it difficult to conclude deals at lower price levels. "I refused to lower my offers further in the Indian market to remain competitive and am focusing on overseas inquiries," said a Bhutanese producer expressing his concerns over low margins.

Moreover, he added that the Bhutanese major plants are fulfilling their previous orders at lower prices as no new inquiries from Indian market have been received. On inquiring about Malaysian imports, he said that Malaysian offers are quite high for the Indian market at around USD 1500/MT CIF India.

SteelMint assessed Ferro Silicon offers at INR 84,000/MT (Ex-Guwahati) and INR 83,000/MT (Ex-Bhutan).

Demand from Europe has also been observed to be gaining momentum and so are its offers. Aided by the rising Ferro Silicon prices in China due to supply constraints has lent support to Indian export offers.

"Malaysia has also started taking orders but Bhutan has an edge over it, as Europe charges 5.6% import duty on Malaysian commodity," said a Bhutanese producer referring to arising completion in the international market. However, he added, that Malaysia received inquiries from some of the Asian countries.

Bhutanese export offers are been assessed at USD 1,400/MT FOB Kolkata, while producers are trying to negotiate for higher offers.

On the future outlook, Ferro Silicon market is expected to remain active with limited chance of any downward price correction.