The Indian ferro silicon market has become silent ahead of the Aug price releases from the producers from Bhutan.
Prices of the material in the Indian market have come down in the past two weeks due to drop in demand from the mild steel industries. Dispatches from Bhutan, which had been disrupted due to lockdown and labour issues, have now become streamlined and are proving to be detrimental for the Guwahati-based producers.
Producers in Guwahati are now quoting around INR 131,750/t exw while the rates from ex-Bhutan are at INR 130,000/t. According to the producers, demand is slow from the domestic buyers, while the sellers are waiting for the Bhutanese plants to release their new offers. There is good demand from the international market, but factors like unavailability of containers, increased freight rates, and inability to produce sized material are limiting profits, say producers. Few deals are happening at around $1,800/t FoB India. Prices of FoB China increased and are currently at $1,850/t for HC 75%.
Outlook
Indian ferro silicon prices is expected to remain stable in the coming weeks. However, the increased prices from the Chinese market may give some support to the international prices.
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