Ferro silicon prices remain rigid W-o-W on power tariff hike in Bhutan. Market participants reported of sparse demand from buyers and no possible uptick in prices in the near-term.
Bhutanese producers reported that power tariff has increased by INR 0.25/unit and hence prices have not fallen despite demand being low.
In spite of a bit of a slowdown in demand from India, Bhutan-based producers of ferro silicon grade 70-75 confirmed fairly stable market with largely unaltered prices and deals being concluded at INR 67,000/MT (ex-Bhutan).
There is better demand in the export market and deals were heard to be concluded in the range of USD 1100 /MT FOB Kolkata.
Indian Ferro Silicon Market Plagued by Low Demand
In the Indian market ferro silicon prices is being pressured by lean demand. In Guwahati, ferro silicon (grade 70-75) is being offered at around INR 65,000/MT.
SteelMint assessed that the Indian ferro silicon market, which was under potential threat as Malaysian companies were going to supply to India at very low prices, having the advantage of low power costs. Power constitutes to around 60% of total production cost in ferro silicon. But now they have tied-up with Japanese companies and will not require to enter the Indian market.Japan imports around 450,000 MT of ferro silicon annually.
Market sources reported that low demand has led to stable offer prices, although further downfall in prices is not expected.
Exchange Rate : USD 1= INR 65.2
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