Ferro Silicon prices in Bhutan regained upward momentum owing to better demand from India.

Bhutan Ferro Silicon Market saw an uptick in prices on strong demand from India. Current offers from Bhutan for Ferro Silicon (grade70-75) are around INR 77,000- 77,500 /MT Producers in Bhutan are offering Ferro Silicon for exports at USD 1,290 /MT FoB Bhutan. A producer source from Bhutan revealed that they have recently concluded deals, in the range of USD 1,350 /MT CIF Germany and Italy.

[su_note note_color=”#deded8″]A Ferro Silicon producer from Bhutan remarked, “This week we saw good demand from Indian companies for which producers have raised their offers. Companies like Tata Steel, SAIL, RINL has good requirement for Bhutan Ferro Silicon grade.”[/su_note]

Bhutan Ferro Silicon prices have marginally risen but the Indian Ferro Silicon market is sluggish. Although Bhutanese Ferro Silicon prices have increased, Indian producers have not been able to hold prices and are now being offered at around INR 74,500 /MT (grade70-75) in Guwahati. Domestic demand for the material is low as the steel market is weak and buyers are in a wait-and-watch approach.

[su_note note_color=”#deded8″]A producer from Meghalaya stated, “If the Rupee continues to depreciate, Ferro Silicon prices will increase. It is expected the prices should rise by January.”[/su_note]

SteelMint learned from market sources that Ferro Silicon market to remain steady at this level and not much change is expected in terms of prices and market conditions in the near term.

Meanwhile, the Chinese ministry also announced last week that export tariffs for Chinese Ferro Alloys would remain unchanged in 2014 from the 2013 level. Chinese Ferro Silicon exports will continue to be taxed at 25%.

Exchange Rate: USD 1= INR 62.25