- BIS license of Bhutanese producers may get resolved this week
- Elevated quotes due to limited material availability
Indian ferro silicon (70%) prices saw a w-o-w increase of INR 1,800/t ($22/t) as Bureau of Indian Standards (BIS) license was yet to be renewed for producers in Bhutan which led to material shortage in India.
As per SteelMint’s assessment on 22 January, Indian ferro silicon prices stood at INR 111,500/t ($1,342/t) exw-Guwahati. Prices in Bhutan also surged by INR 3,100/t ($37/t) w-o-w and were standing at INR 113,000/t ($1,360/t) exw.
Overview of the market
Supply shortage in the domestic market: As exports of ferro silicon from Bhutan stopped, India, the country’s largest importer, experienced a shortage of the material. Majority of the producers in Bhutan were also uncertain as to when the license will renew. As a result, few manufacturers and traders began to quote higher offers.
A producer from Bhutan claimed,”I heard someone offered INR 120,000/t ($1,444/t) in India. Some people have exhausted their stock and need to procure material at any cost.”
India imports 0.1-0.15 mnt of ferro silicon annually from Bhutan.
Market trends in China: The prices of ferro silicon (Si:75%) in China stayed steady w-o-w at RMB 7,120/t ($1,002/t) exw-Inner Mongolia. The downstream demand remained on the lower side and inventory demand from steel mills was also less due to off season.
However, ferro silicon futures for March 2024 delivery contract on China’s Zhengzhou Commodity Exchange (ZCE) fell by RMB 60/t ($8/t) w-o-w to RMB 6,634/t ($935/t) on 22 January.
Outlook
Sources indicated that the BIS renewal process may conclude by the end of this week, potentially leading to higher prices in the days ahead.