Indian ferrosilicon prices spurted on severe supply shortages as dispatches from Bhutan got disrupted due to a nationwide lockdown. Most of the producers in Bhutan are not offering in the market as the supply situation is not clear right now and most of the producers are trying to clear their backlogs.
Meanwhile, in Guwahati, producers are sharing similar sentiments as most of them are overbooked for the next two months and are left with a small quantity for the spot market. Producers are of the view that the market situation is quite volatile now and defies prediction. Currently, the situation is more favourable for a rise in prices but once Bhutan’s dispatches get normalized the prices could fall again.
Bhutan is under nationwide lockdown for seven days since December,23 after sporadic covid cases in the country. Thus, the dispatches from Bhutan are not expected to normalize in the coming weeks as the labour availability issues could continue for some more time.
Current Assessments:
- Ex Bhutan: INR 1,05,000/t;
- Ex- Guwahati: INR 1,05,000/t;
- FOB India: $1220/t;
- FOB China: $1295/t
Outlook:
Ferrosilicon prices are expected to increase marginally in the coming week, due to continuing supply shortage and increasing prices of carbon material.
Leave a Reply