The ferro silicon market this week saw a sharp rise in prices, following an improvement in demand from the steel sector.
In the Bhutan ferro silicon market, offer levels moved up by 3000-4,000/MT and deals for grade 70-75 were being done at INR 60,000-61,000/MT (Ex-Bhutan). “We have seen sharp rise in demand in the past few days so the prices have risen in the market on higher activity. Also, our stock levels have drastically reduced and we are left with low inventory,” remarked a Bhutanese producer.
The ferro silicon market in Bhutan witnessed a sharp increase in prices, as producer’s report of improving demand which helped to raise their offer levels. For many months demand has been very low in the ferro silicon market and prices have been continuously falling. Earlier in the Indian market some major producers preferred Malaysian ferro silicon, for its competitive price. Since the dollar rate has increased imports from Malaysia has become costlier and so demand for Bhutanese material has risen.
Export offers from Bhutan were heard to be concluded at USD 900/MT FoB Kolkata.
Domestic Ferro Silicon Prices Rise on High Demand
In the Indian market ferro silicon prices have edged up on the back drop of increase in demand.
SteelMint assessed ferro silicon grade 70-75 at around INR 58,500-59,000/MT (Ex-Guwahati). Looking at rise in prices a Meghalaya based producer said, “Sentiment is reasonably positive in the market and we are expecting prices to remain well supported on strong domestic demand.”
Indian producers cited that prices have increased as demand from the steel sector has improved. Also with the dollar rate going up imports have become weak and domestic material demand has increased.
On the future outlook, it is expected prices will remain firm. Also, there are some reports of shortage in supply in the market, and so market sources believe that prices could rise further.
Exchange Rate: USD 1 = INR 68.4
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