Indian ferro silicon prices are stable this week, despite dull demand in the domestic market. The export market is still inactive with no inquiries for past two months now. However, prices might pick up soon as there is not much material available in the market. Many producers are holding back their offers as they foresee a slight increase in prices.
The steel ministry has extended the deadline for BIS certification of Ferro silicon plants by three months from 23rd July. However, it was announced just a day before the deadline, due to which not much material was imported. Thus, there is no imported material in transit now.
Meanwhile, demand from stainless steel and the aluminum industry might come up soon with an increase in the running capacity, as this may also provide support to the prices in the present dull market.
Moreover, there is also a shortage in the market due to various logistical issues and labour unavailability. On top of that, the Bhutanese truck association has called for a strike, which might add up to the supply shortage for a short while.
The transaction price remains at around INR 71,000-72,000/t Ex-Bhutan and around INR 71,000 Ex-Guwahati. However, a few producers who are in need of cash are underselling to the levels of INR 70,000/t.
Techno-commercial Bid Results for SAIL’s Ferro Silicon Tender
The SAIL tender which was issued on 4th July for purchase of 6,300t Ferro Silicon, which will meet the requirement of the various stated SAIL plants for the duration of 4 months (Aug-Nov’20). The reverse auction is likely to take place next week. According to market sources, the tender quantity is hugely reduced as the inventory with SAIL lasted longer due to lower capacity utilization in the plants during and post lockdown.
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