Bhutan’s producers kept their ferro silicon offers unchanged at INR 140,000/tonne (t) exw, as majority of them sold out their material for the month and have limited stocks to offer.
In addition, increased labour availability issues in both Bhutan and Meghalaya are affecting production.
In Meghalaya, offers are at around INR 145,000/t, but many deals were concluded at lower prices too. Few producers also held back offers on expectations of an increase in prices.
There is good demand from the international market, but the unavailability of containers, increased freight rates, and inability to produce sized material is limiting profits, say producers.
Meanwhile, prices in China’s domestic market increased on supply constraintsafter power curtailment in Inner Mongolia. Although, prices in China’s exports market were stable, smelters expect that these will rise soon.
Outlook
Bhutan-based producers believe that prices may increase soon. However, reduced steel production in the country and restarting of Malaysian ferro silicon mills could be detrimental factors.
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