Bhutanese ferro silicon prices remained stable w-o-w on healthy supply-demand dynamics. Currently, both the Indian and Bhutanese producers are offering at around INR 127,000/t exw.
Sturdy demand in domestic market stabilises prices
As per information available to SteelMint, there are ample inquiries in the market. This week, around 650 tonnes (t) of deals were concluded from Bhutan, while around 1,750 t of material was booked from the Guwahati region for the HC70% grade, according to SteelMint sources.
Meanwhile, a few producers were busy focusing on government tenders. Robust demand and good inquiries allowed the producers to keep their prices stable.
One of the major ferro silicon producers informed SteelMint that prices of the material are dependent on smelters which are busy catering to the spot market. These players could increase or drop prices overnight, based on the current supply-demand dynamics. But producers who focus on long-term contracts and government tenders have to stick to their prices and quality.
Import demand muted on container shortage
Seaborne inquiries of ferro silicon remained subdued from the Indian market owing to the severe unavailability of high-priced containers and record high freight rates. Currently, exporters are offering $1,760/t FoB India for ferro silicon HC70%. The muted demand for exports has reduced the supply tightness in the domestic market.
Chinese prices remain on an upward trend
China’s ferro silicon prices are still on the higher side due to less output from submerged arc furnaces. Electricity norms are hitting production of ferro silicon. Increased prices of containers in line with higher prices of ferro silicon are refraining the Chinese from buying imported material.
European prices rise on tight supply
Ferro silicon prices in Europe have climbed owing to supply shortage. Most of the European buyers who relied on Brazil and Malaysia’s ferro silicon have reduced their imports due to an acute shortage of containers worldwide.
Meanwhile, one of the major high-grade ferro silicon smelters, Finnfjord Smelteverk, will be going into maintenance for two weeks in October. However, it will not affect the European market.
Outlook
Steel mills are waiting for a new price discovery next month. However, high freight costs and coke prices are giving them cold feet as they expect a future hike in prices.
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