Indian ferrosilicon prices have increased on the back of supply constraints in Meghalaya and as the producers there, are over-booked with existing orders. Meanwhile, the producers from Bhutan also shared similar sentiments and have increased their offer prices.
Ferrosilicon smelters without captive power are distressed by the news of possible load shedding for a prolonged period in the state. Smelters were already facing 7 hours of power outage which affected almost 40% of their total production. “If this power outage is implemented it would take almost 35% of the total quantity of ferrosilicon out of the Indian market”, shared a ferrosilicon producer.
Currently, ferrosilicon is being offered at INR 100,000/t Ex-Bhutan, while few offers were also heard at slightly lower levels too. In Guwahati, producers are offering at around INR 101,000/t Ex-Guwahati for bulk deals, while smaller deals are also heard to be concluded at higher prices for immediate dispatches.
Outlook
Market participants believe that these prices might sustain due to increased supply constraints and as demand from steel mills has gone up too.
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