Demand for Indian origin Ferro Silicon has improved on account of suspension of dispatches from Bhutan, which is however expected to resume in the coming week.
“Demand has undoubtedly picked up recently as buyers diverted their procurement towards domestic producers due to supply curb from Bhutan,” stated a Guwahati based producer referring to increasing number of inquiries.
Currently, the offers for domestic Ferro Silicon remains elevated at INR 71,000/MT (Ex-Guwahati), while Bhutanese producers maintained their offers at INR 70,000/MT (Ex-Bhutan).
Bhutanese producers are observed to be optimistic, as they might be awarded custom clearance very soon and return to business. “We might raise our prices once we start selling, as the current stock is booked at pre-decided prices,” mentioned a Bhutanese producer indicating an upward price correction on new inquiries.
SteelMint learned from sources that the Bhutanese producers have requested the Indian authorities to exempt Bhutanese Ferro Silicon from the ambit of GST, referring this to be the prime reason for Custom clearance issue.
With Bhutanese material facing dispatch issues, export offers also got affected. A source revealed that a deal has recently been concluded at USD 1155/MT (FOB Kolkata).
In consonance with the present scenario and considering the bullish sentiment among the market participants, an upward correction in prices is likely in near-term.
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