A lack of buying interest has restricted the Ferro Silicon offers while selling pressure grows.
Ferro Silicon prices hold on, but a bearish sentiment is creeping into the Ferro Silicon market on account of inactivity, exerting pressure on sellers to cut prices.
SteelMint assessed Ferro Silicon prices at INR 84,000/MT (Ex-Bhutan) and INR 85,000/MT (Ex-Guwahati). However, some of the deals are also heard to have been concluded at lower prices.
“There is an absence of keen interest in procuring Ferro Silicon, due to the underlying seasonal production slowdown in the Indian steel industry”, said a source referring to the current price trend of the commodity.
Inquiries from overseas are also heard to be very weak as some of the major importers of the commodity have already fulfilled their requirement for the quarter.
Moreover, the export offers of Ferro Silicon also took a major hit due to an uncertain currency fluctuation. With INR moving to record lows against the USD, the exporters readily lowered their prices to lure buyers.
SteelMint assessed Ferro Silicon export offers at USD 1,320/MT FOB India with demand being feeble even at such low prices.
The short-term expectation is for prices to remain under pressure and downward price movement is still possible, on the back of low Ferro Silicon demand worldwide.
