Indian ferro silicon prices have been stable for weeks now, however, the demand is quite low now as all the major buyers have fulfilled their requirement for the month.
Producers in Bhutan are waiting to declare the new round of prices and expectations are for higher prices. Demand from Stainless steel sector is on the rise. Although, the production of steel has gone down due to lower profit margin as finished steel prices are going down and iron ore prices soaring higher.
A major producer from Bhutan shared with SteelMint that the production cost has gone up, due to increased labour charges and freight cost subject to regional lockdowns and a few other minor bottlenecks. The producers in Bhutan believe that any further reduction in prices is highly unlikely.
The prices in Bhutan and Guwahati are assessed at INR 82,000/t. However, a few deals were concluded at lower prices in Guwahati for smaller quantities.
Meanwhile, prices in the international market have also picked up. Malaysian ferro silicon is available at $1040-1055/t fob. This has, however, boosted the sentiments of Indian producers as the Malaysian imports might not be an issue to deal with for them.
Outlook
Ferro silicon prices might remain stable for now, with little to no deviations in this month. It is believed that next month’s purchases might start soon and till then the market is in a wait-and-watch mode.
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