Indian ferro silicon (70%) prices bounced back by INR 4,300/tonne (t) w-o-w owing to supply shortage, mainly in Bhutan.
Most of the Bhutanese producers are sold out for the month while some are busy catering to government tenders. Indian producers increased their offers amid supply shortage.
Despite moderate inquiries in the spot market, most suppliers in India increased their offers this week due to the tight supply from Bhutan.
According to SteelMint’s assessment on 19 August 2022, Guwahati-based producers offered at around INR 148,600/t exw, while Bhutan’s offers hovered around INR 150,000/t exw. A total of 500 t of deals were recorded this week as well.
One of the major producers confided, “Due to Bhutan’s tight spot supply and India’s high electricity costs, I increased prices for this week even though demand remains sluggish. Only one client placed an order.”
China market overview
Ferro silicon prices (75%) in China were up by RMB 90/t ($13.22/t) w-o-w to RMB 7,890/t ($1,159/t) ex-Inner Mongolia due to supply cuts and increasing raw material costs.
However, ferro silicon futures for September delivery on the Zhengzhou Commodity Exchange (ZCE) fell by 7% to close at RMB 7,518/t ($1,105/t) on 19 August despite production curbs.
Outlook
It is unlikely that buyers will accept higher offers in the bearish ferro alloys market, so Indian ferro silicon prices will remain firm at around INR 150,000/t, sources informed.
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