India: Ferro Silicon Prices Pushed Lower by Weak Demand

Ferro Silicon producers in India and Bhutan are under pressure as the demand has been persistently low and the production cost is high. Buyers are aggressively negotiating for lower prices and the sellers in Bhutan are trying to hold the prices, as any price below such levels will be lower than their production cost. Producers are experiencing scattered demand in India. Meanwhile, the Ferro Silicon Market remained sluggish in the global market. Prices in China and Europe remained stable mostly because of thin trading activities, however, prices in the US narrowed down due to sluggish market conditions.

Producers from Bhutan are offering Ferro Silicon at INR 63,000/MT Ex- Bhutan and Ferro Silicon prices Ex-Guwahati is at around INR 64,000/MT for grade 70%. Prices in Hyderabad for 72% grade Ferro Silicon is in the range of INR 69,000-70,000/MT. In the export market, prices remained unchanged for Ferro Silicon (70%) at USD 990/MT FOB Kolkata. However, the inquiries remained missing in the export market despite lowered prices of Ferro Silicon. Producers in Guwahati are also facing much pressure from the buyers and the buyers are negotiating for lower prices, although a few deals were heard to be concluded around INR 63,000/MT.

Owing to the high Production cost, the prices are likely to remain stable and not fall further in the following week.