India: Ferro Silicon Prices Touched 9-Year High in CY17
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Ferro Silicon started the year on a downward trend, wherein, its prices were under severe pressure in line with lackluster demand as Ferro Silicon producers decided to cut their offers to consummate trade.
However, towards the end of the first quarter, Ferro Silicon market picked amidst an improving steel market. Moreover, earlier in the Indian market some major buyers preferred Malaysian Ferro Silicon, for its competitive price but an appreciated dollar rate increase elevated the Malaysian import price and so demand for Bhutanese material had risen.
During the second quarter, a rebounding steel market in India has eventually supported Ferro Silicon prices. The Ferro Silicon market turned upward on healthy demand coupled with limited spot supply and thereafter maintained stability.
The third quarter of CY17 proved to be beneficial for Ferro Silicon producers as demand from the overseas improved encouraging a rise in commodity's price. Later in the quarter, the prices of Ferro Silicon sky-rocketed on global supply crunch as Malaysia was booked and Russia had to halt its production.
The rising Ferro Silicon prices caught fire when China announced its production cut to curb pollution during winter. The fourth quarter of CY17 witnessed a sharp hike in the commodity's prices on global supply crunch and strong demand, whereby Ferro Silicon prices touched its highest in India since 2008. The prices of the commodity maintained its stability throughout the rest of fourth quarter.
Indian Ferro Silicon Import and Export
Indian Ferro Silicon import stood at 0.15 MnT in CY17, witnessing a decrease of 12% Y-o-Y against 0.17 MnT in CY16. Bhutan was the largest Ferro Silicon exporter to India with 0.09 MnT of export in CY17 followed by Malaysia, Russia, China among others.
India also exports Ferro Silicon in which it recorded a rise of 9% Y-o-Y, as it exported 18,606 MT in CY17 against 17,076 MT in CY16. Brazil was the largest importer of Indian Ferro Silicon followed by Bangladesh, Turkey, Oman, the Netherlands among others.
