India: Ferro-silicon prices slipped owing to availability of cheaper imported material

Indian ferro-silicon prices slipped by up to INR 3,000/t w-o-w, owing to lacklustre stainless-steel market. Meanwhile, low cost imported ferro-silicon is available at the Indian ports. As the prices in the domestic market are still fluctuating, with the demand is near to absent and the liquidity crisis is forcing the producers to conclude deals at much lesser prices.

Most buyers are inclined towards imported materials from Malaysia and Maldive at around INR 73,000-74,000/t landed at the Indian ports, which is much lesser than the present levels in the domestic market. There is still further room for prices to correct for generating buying interest for domestic material. In Guwahati, few producers concluded a deal at INR 78,000-78,500/t early this week, however, the prices have fallen to INR 77,000-78,000/t and are expected to go down further. Meanwhile, the Bhutan prices are at INR 76,000/t, but no deals have been recorded. Moreover, the export market remains inactive.

Future Outlook:
The prices of ferro-silicon might fall further due to the selling pressure on the producers combined with the low cost higher graded imported material from Malaysia available at the Indian ports.