Ferro Silicon market faces vicissitudes in its demand and price range during the first 2 months of 2014.
Ferro Silicon market witnessed a low demand and lesser buying interest from most of its participants during the first week of Jan, 2014. Traders ignored low demand presuming its effect is due to New Year. But during the second week, when Bhutan started exporting and supply end stabilized, low demand remained unaffected. Gradually, towards the third and fourth week the buying interest remained low and supply exceeded over demand. Alloy prices declined further in domestic as well as exports market.
However, towards the end of Jan and 1st week of Feb, 2014 the demand and buying interest returned. Bhutan received frequent orders from steel giants like Tata Steel and Steel Authority of India (SAIL). The European countries demanded more alloy from the Bhutan as compared to Indian traders. Traders expected that the demand from Indian market will remain stable in Feb, 2014 as compared to Jan, 2014. Nevertheless, newly opened domestic plants in the country exceeded supply of Ferro Silicon in the market giving its buyers ample material availability.
Ferro Silicon prices during first week of Jan, 2014 was reported to be around INR 77,000/MT from Bhutan. However, towards the end of Feb, 2014 the prices have witnessed a major decline of about INR 1000/MT from Bhutan and around INR 1500-2000/MT from Guwahati.
Traders do not expect much from market during Mar, 2014. However they presume a price rise during Apr, 2014 on account of increased power tariffs in the country. This might also result in shut down of a few domestic plants according to the traders. It is expected that the exceeded supply over demand might not continue in future resulting in better market scenario for the alloy.