Indian ferrosilicon prices have been sliding down since past few weeks owing to limited trades in the domestic market. Producers in Bhutan reduced the prices by INR 5,000/t to INR 1,00,000/t Ex-Bhutan and Guwahati followed the suit. After slashing the prices of ferrosilicon, producers are getting increased inquiries from the domestic market. Few producers are also short-selling at INR 1,000-1,500/t lower than the stated levels.
Most of the producers in Bhutan and Guwahati have enough orders for the month and are less interested in exports. Although the inquiries in exports are higher, producers are resisting due to increased container unavailability and higher freight costs. However, a deal was concluded at $1,440/t fob India last week by a Guwahati based producer.
Meanwhile, in China, Inner Mongolia Development and Reform Commission and the Department of Industry and Information Technology issued a notice to adjust the electricity price policies and electricity market transaction policies. There is a higher possibility of electricity charges to increase which will push up the prices of Chinese ferrosilicon and inline drive up the international prices. Meanwhile, due to production cuts in Malaysia and higher freight cost, Indian producers are a little worried about imports.
Outlook:
Prices of ferrosilicon are expected to be range-bound amidst better demand. However, falling steel prices are still a reason to worry for the alloy manufacturers.
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