Indian market witnesses supply constraints from Bhutan, as prices continue their ascent.
“Supply worries prompted short covering from consumers in the steel sector, and the Ferro Silicon market is expected to rally further in the near term.,” said a Meghalaya based producer. SteelMint assessed that Malaysian Ferro Silicon plants are booked out until the end of October and supply cut-off from Russia have resulted in prices soaring in India.
The price range of Ferro Silico from Bhutan and Guwahati has widened as Bhutanese producers have decided to keep prices lower to attract greater buying interest. Market sources reported that Bhutanese producers are sitting on bigger stockpiles. There have been some dispatch issues from Bhutan as the customs office on India-Bhutan border with poor internet facility has created backlogs. Hence, the Bhutanese producers have kept their offers lower to clear their inventory.
The Indian domestic Ferro Silicon market continued to strengthen, fuelled by the limited available supply. “Just about every Ferro Silicon buyer has called this week to ask about Ferro Silicon, even the ones I’ve not done business with in five years,” a producer from Guwahati told SteelMint.
SteelMint assessed the Ferro Silicon prices at INR 86,000/MT (Ex-Guwahati) and INR 83,000/MT (Ex-Bhutan).
Given elevated prices in the overseas markets, demand for Bhutanese Ferro Silicon has been high as well with inquiries mostly from the Middle-East countries and Europe.
Export offers reflected resemblance to the domestic prices as it went up to USD 1,380/MT.
Ferro Silicon supply in India is expected to be tight until October, according to market participants, and prices to remain firm.
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