Ferro silicon prices firmed up this week with producers in Bhutan reporting of not much material left unbooked, and few plants shutting-down for maintenance work.
Ferro silicon offers have risen in Bhutan as demand is resilient along with some shortage in supply. Currently, grade 70-75 is being offered at around INR 69,000/MT (Ex-Bhutan). Bhutanese producers have increased their offers looking into the market conditions but no deals have been concluded so far at these levels. However, the export market remained flat and witnessed very low demand from European buyers. Ferro silicon is being offered at around USD 1,080/MT FoB Kolkata.
“Supply is tight and I see our offers being accepted soon. Tight supply is the fundamental”, remarked a Bhutanese producer.
Indian Ferro Silicon Prices Unchanged
Ferro silicon prices in the Indian market remain stable. SteelMint assessed that prices in India for ferro silicon is likely to increase by next week as those buyers not who are not able to get supplies from Bhutan will now look to source material domestically. Currently, grade 70-75 is being traded at INR 65,500/MT (ex-Guwahati).
A producer source from Meghalaya remarked, “Ferro silicon market is doing much better than before and finally showing some real improvement in demand. We are hoping for the market to pick up by next week.”
On outlook, market participants are of the view that with good demand and shortage in supply from Bhutan, there is a strong impetus of ferro silicon prices remaining firm and perhaps, of strengthening in the coming month.
Exchange Rate: USD 1 = INR 65.4
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