IRON and STEEL
Producers in India and Bhutan have maintained the prices of Ferro Silicon despite low demand and thin trading activities. India is experiencing such sluggish demand for Ferro Silicon owing to the bearish Stainless and Steel market and characterized by the oversupply of material. Although, the demand remains scattered, as a few producers were also heard to be booked for the month, while the others are undercutting the prices to attract buyers.
Producers from Bhutan are offering Ferro Silicon at INR 66,000/MT Ex-Bhutan. Meanwhile, few deals were heard to be concluded at INR 65,000/MT. Ferro Silicon prices in Guwahati is in the range of INR 66,000-67,000/MT. In the export market, offer prices fell in line with low global demand, the prices for Ferro Silicon (75%) is at USD 1060/MT FOB Kolkata.
On the future outlook, it may be anticipated that the Ferro Silicon prices may continue at such levels for the time being with marginal fluctuations. Producers may undercut the prices further in lack of demand. Most market participants believe that the prices may redeem only after the Stainless Steel market starts improving and prices for other Ferro Alloys also picks up.
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Ferro Silicon prices moved down in Bhutan despite improving demand. Producers are cutting down prices to entice buyers. However, the demand remains scattered, a few producers are enjoying good demand whereas others are reducing prices and hence, the overall prices are getting affected. Producers in Bhutan were undercutting prices since last week and now the producers have reduced their offer prices as they are facing a cash crunch in the month-end. Many producers are low in inventory.