Indian Ferro Silicon prices have escalated exponentially against last week amid severe supply shortage in the major producing areas of Bhutan and Northeast India. A number of Ferro Silicon plants are shut down and the availability of Charcoal is also inadequate. Supply from Southern India is limited for Charcoal which created panic in the market and the due to this most of the producers have to reduce production quantity. Although, the supply tightness is seasonal, the scarcity this time is severe. Most of the producers are quoting higher prices for immediate delivery of materials.
In the domestic market, the offer prices for Bhutanese Ferro Silicon increased to INR 85,000/MT Ex-plant for 70% grade. Meanwhile, offers from Guwahati based producers are at around INR 88,000/MT Ex-plant. In the export market, deals are absent as the domestic offers are much more lucrative in the present market scenario. Meanwhile, imports have started to take place due to increased price levels at domestic levels.
On the future outlook, the Ferro Silicon prices may rise further amid limited available supply. Although, the rise could be for short while, and the prices may trend lower in the coming month.
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