India: Ferro Silicon Prices Hold Still Despite Firm Demand

Ferro Silicon prices remain unchanged despite demand being persistently robust as few producers are quoting at competitive prices to encourage sales.

A healthy demand for Ferro Silicon has created a sense of optimism among the producers as most of them are low on inventory. However, an offer from a Bhutanese giant has restricted the other producers from the region to maintain their prices firm to remain competitive.

The domestic offers for Guwahati based commodity corrected upwards to INR 85,000/MT, while offers from Bhutan remain unchanged at INR 84,000/MT.

However, inquiries from the overseas market are limited, and Bhutanese producers are fulfilling their existing orders from Europe. Export offers remain unchanged at USD 1,400/MT (FOB Kolkata). Europe earlier imposed an anti-dumping duty of 25% on China's Ferro Silicon, while Bhutan enjoys Custom Duty exemption, making Europe its prime market.

"A recent downswing in Chinese ferroalloy market has created a bearish sentiment among the overseas buyers," revealed a producer source discussing the downward correction of Ferro Silicon offers from China. He also added that Indian import from Malaysia is very unlikely.

On the future outlook, Ferro Silicon offers are expected to remain stable with a fair chance of upswing in prices, owing to high demand for the commodity.