Indian ferrosilicon prices had been falling continuously in the past few weeks. This trend seems to be arrested as early this week producers from Bhutan increased their offers to INR 98,000/t. The prices were increased owing to the market buzz that Chinese prices are set to increase amidst rising production cost. However, few producers who have more stocks are short selling at around INR 96,000/t.
Intermittent power cuts in Guwahati had adversely affected production volumes last week. However, the production is normalized now and most of the producers are booked. The upcoming SAIL tender would also give further clarity on the market demand and pricing. Guwahati producers are firm at their offers that now stand at INR 98,000/t. Few producers who are sold out for the month are also offering at higher prices.
Meanwhile, the Chinese market returned from holidays today but most of the producers are holding a wait-and-watch approach till the next week. Chinese ferrosilicon prices are set to increase due to stricter electricity norms in Inner Mongolia which is the largest Ferrosilicon producing region of China. The prices closed at $1410/t in China, before the holidays and are stable for now.
Outlook:
Indian ferrosilicon market is still ambiguous and the offer prices are yet to be accepted fully in the market. Meanwhile, smelters are worried about the producers who are short-selling as they might break the prices.
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