Indian ferrosilicon prices increased on short supply in the domestic market. Meanwhile, the demand is better from the ferrosilicon consumers. Most of the producers are overbooked and the traders are taking advantage of the situation.
Currently, ferrosilicon prices in Bhutan are at INR 107,000/t, and in Guwahati at INR 109,000/t ex-works. However, few producers are still quoting INR 104,000/t in Bhutan but no material is available with them. Meanwhile, few producers in Guwahati are quoting higher than the stated prices.
- Bhutanese supply resumes
Dispatches from Bhutan resumed after 17th April, but most of the producers are overloaded with the previous orders which were delayed due to border closure. Meanwhile, traders who brought material early are receiving material now and thus are offering at much higher prices than stated. “It is expected that by next week the previous orders might be dispatched and the producers would be able to sell in the market”, shared a producer with SteelMint. - Meghalaya producers remain oversold
Meghalaya producers have been facing electricity supply issues since the past month, which affected the production levels, and with Bhutanese dispatches getting affected, northeast Indian producers are almost sold out and are offering higher prices for smaller quantity deals in advance payment.
Outlook
Ferrosilicon producers also remain wary of the oxygen supply shortage situation in India, and they are worried about the imminent steel production cuts, However, any dent in the prices of ferrosilicon is not expected in the coming week.
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