Ferro silicon prices continue to hold firm for the third week on continuous shortage of supply along with some steady demand.
Ferro Silicon producers continued to offer at strong levels as they were confident of finding buyers. “Demand is not expected to increase much, but it will not fall substantially either, so consumption will remain stable, which is good news as prices will keep firm,” said a Bhutanese producer. The market is also down on supply which has kept the prices unchanged for almost three weeks.
Moreover, power tariff in Bhutan is expected to go up again by 45ch/unit which tantamounts to an increase by 33%. This increase in cost of production could severely impact the Ferro Silicon industry in Bhutan, which has already been hit by cheap Chinese steel flooding the Indian and other markets and the commissioning of new Malaysian plants, and slowdown in the global economy. The Malaysian government has given a tariff discount for about 20 years at the same rate. Exporting to Japan and India is likely to be cheaper for Malaysians than Bhutan ferro alloys companies.
SteelMint assessed weekly ferro silicon grade 70-75 is trading at around INR 65,000/MT (Ex-Bhutan). The export market continues to be dull with no trading activity at all.
Similarly, domestic ferro silicon prices in India see continued stability. Sources agreed that trade was limited, but seemed buoyant. A producer from Meghalaya stated, “Ferro Silicon prices remain unchanged with considerably good buying. This has lead to deals at firmer levels.”
Currently, Ferro silicon price for grade 70-75 stands at around INR 63,000/MT (Ex-Guwahati).
SteelMint assessed that in the coming month Indian Ferro Silicon market may run steadily and the demand may stay intact.
Exchange Rate: USD 1 = INR 67.1
Leave a Reply