Bhutan’s major ferro silicon plants hiked their offers to INR 120,000/tonne (t) owing to increased demand but supply constraints. The previous bookings were concluded speedily but now the producers are not accepting any new orders at these prices. They told SteelMint that they expect prices to increase soon as demand for ferro silicon increases.
Meanwhile, Guwahati-based producers are offering the material at higher prices as they are booked for the month. The quotations have reached around INR 140,000/t, while the most traded quantity is at INR 135,000/t. Most of the deals from Guwahati are for small volumes.
International prices of ferro silicon have also picked up and Chinese offers are at around $1,700/t FoB China. Meanwhile, OM Holdings, a major ferro silicon producer, has also closed operations at its Sarawak unit, which has boosted sentiments in the international market.
Currently, prices of imported ferro silicon are hovering at around $1,725/t for 75% FeSi, which are higher than domestic prices. However, the supply constraints from Bhutan and north east Indian plants are forcing buyers to look out for import options.
Majority of Bhutan’s plants are facing labour issues due to the increased number of Covid-19 cases, while a few plants are completely shut as their workers have got infected. In addition, intense checking at Mini Dry Port (MDP) and various state borders have also affected shipments. The availability of trucks remains an issue for most of the ferro silicon producers in Bhutan and India.
Outlook
Producers are of the view that Bhutan’s benchmark prices would soon pick up and match the Guwahati levels. Buyers are also trying to procure as much quantity as possible as the bullish sentiments may sustain in the market for this month too.
Leave a Reply