Indian Ferro Silicon prices have risen sharply in the northeastern region amid a shortage of Ferro Silicon. Most of the Ferro Silicon producers are overbooked for the month. Whereas, few producers in Guwahati are holding material as they expect the prices to rise further. A Guwahati based producer shared that they have huge orders in hand and they are also supplying in the spot market due to recent increase in the prices and with the present supply shrinkage from Bhutan the prices in Guwahati is ought to shoot up further. Meanwhile, the domestic market of Ferro Silicon is also facing supply disruptions for raw materials like Charcoal and Low ash Met Coke that is required for Ferro Silicon Production. Such factors are causing a huge ripple effect on the prices of Ferro Silicon in the domestic market.
In the domestic market, the offer prices for Bhutanese Ferro Silicon increased to INR 80,000/MT Ex-plant for 70% grade. Meanwhile, offers from Guwahati based producers are at around INR 82,000/MT Ex-plant. Export prices from India are at USD 1060/MT for 70% grade. Producers in Bhutan are getting inquiries from the export market, but are unable to conclude any deals due to lack of Ferro Silicon.
On the future outlook, the prices may rise further on bullish sentiment amid limited available supply.
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