Ferrosilicon prices have been firm in recent months amid a strong rally in steel prices pushing up prices for other input materials as well
- Increased inquiries from exports market
- Increased ferrosilicon prices in the international market
- Lower inventory levels with the producers
- Shortage of material in the global market
Indian ferrosilicon prices are unchanged from last week at INR 98,000/t as most producers are booked for the month and limited material is available in the spot market.
Many export deals were concluded at $1,550/t CFR Europe and producers are currently offering at $1440/t fob India. Most of the Bhutanese producers are either booked for the month or taking inquiries for export. There is strong optimism in the market that the prices of ferrosilicon will increase on international cues, thus many producers are holding offers in the Indian market.
Two weeks ago, when prices of ferrosilicon fell, many producers sold an ample amount of material and currently are at a low inventory level. Meanwhile, many Indian producers are eyeing the upcoming government ferrosilicon procurement tenders. The market remains firmly optimistic that prices in the coming weeks are bound to increase and therefore remain firm at their offers. They are eagerly waiting for international inquiries to pick up further.
Meanwhile, import viability is compromised with increased offers from Malaysia. Malaysian offers are at $1,600/t CNF India, which translates to approximately INR 1,15,000/t. In addition to this, there is no clarification on the extension of the BIS certification deadline, which was scheduled to expire on 23 April 2021.
International market update
Europe:
Prices in Europe have increased substantially owing to the low availability of materials. The stainless-steel market revamped operations before Christmas and the demand for ferrosilicon increased. However, due to winters, increased freight cost and better domestic demand, Indian producers were not willing to ship materials. A good number of deals happened at around $1600/t CFR Europe. But now, there is no low-cost material available and quotations in Europe are raised to $1900/t. Meanwhile, prices and availability issues from China have helped the ferrosilicon market turn bullish.
China:
Chinese ferrosilicon prices are bound to increase by up to RMB 800/t amidst increased power tariffs. Though many plants have stock after the holidays, the sentiment of the market remains strong and the prices remain firm. Currently, domestic prices are hovering at around RMB 7,800/t in China, while, export prices increased to $1,410/t for 75% Si and $1,360/t for 72% grade. There is good demand from Europe and the market seems optimistic.
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