The fall in ferro silicon prices in India came to a halt on expected supply shrinkage as the State Government of Meghalaya has decided to close all entry points in the state from 24th to 31st July in the wake of an increasing number of Coronavirus cases . This will cause labour availability issue and therefore the production. Being the largest producer of ferro silicon in the country, there is some supply concern.
However, imports are now in check as many producers of ferro silicon couldn’t get the certification from BIS, without which imports have not been allowed from the start of this month.
The prices remained stable in both Bhutan and Guwahati, despite dull demand and low cost imported Malaysian material available at the ports.
The transactional price remains at around INR 71,000-72,000/t Ex-Bhutan and INR 72,000/t Ex-Guwahati.
Outlook:
Market participants believe that the BIS Certification for ferro silicon deadline will be extended as only a handful of companies could get the certification while the rest are still waiting in line. Meanwhile, ferro silicon prices are expected to stay stable in the coming week as low demand has been balanced by limited supply.
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