Bhutan’s ferro silicon producers increased their offers by INR 5,000/tonne (t) to INR 120,00/t last week. Soon after this, they got overbooked within a day and closed sales at these prices. However, a few producers are accepting orders for very small lots at higher levels. Most producers in Bhutan are reluctant to take bulk orders due to supply shortages. Some small deals were concluded from Bhutan at around INR 125,000/t this week, while the offers have been increased to up to INR $130,000/t.
On the other hand, Guwahati producers are quoting higher prices for ready shipments. These prices are much higher than Bhutan’s. This is because the Guwahati producers are at an advantage with international prices going up while the Bhutan market is falling behind due to supply issues. Currently, Guwahati producers are also quoting up to INR 140,000/t, and they expect prices to go up further with Chinese prices increasing.
Malaysia is the major ferro silicon market for Indian importers. However, with their largest ferro silicon producer, OM Holdings, suspending operations, supply is tight in the country. Guwahati is the only source for ready deliveries now. Due to the tight supply-demand dynamics, buyers and traders are shifting towards the Chinese market to procure the material. However, due to production cuts in the Ningxia region, Chinese offers increased to around $1,790/t for the grade 72% and $1,820/t for the grade 75%.
Outlook
Indian producers are full with domestic orders and are not catering to exports currently. It is expected that prices in Bhutan would further increase in the coming week as enquiries remain on the higher side.
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