With curtailment of Ferro Silicon supply from Bhutan, Indian domestic players gain market, prompting a hike in their offers.
Domestic Ferro Silicon producers witnessed high demand amid supply constraints from Bhutan. SteelMint assessed that Bhutanese producers are facing issues in dispatching their product on custom clearance concerns.
The present offer for domestic Ferro Silicon surpassed that of Bhutanese material at INR 70,500-71,500/MT (Ex-Guwahati) and INR 70,000/MT (Ex-Bhutan).
“Our Ferro Silicon is at par with that of Bhutan due to GST implementation, as cost incurred is Basic price, freight and GST,” mentioned a domestic player.
“Demand from overseas is also good but the issue regarding custom clearance has been a major concern. Moreover, most of the buyers seeking our product are unable to buy the same,” said a Bhutanese producers referring to a high demand for Bhutanese Ferro Silicon in general.
In line with low Bhutanese Ferro Silicon prices in the domestic market, export offers also corrected downwards to USD 1160/MT FOB Kolkata.
In the near-future, demand is expected to be steady and domestic market participants also seem bullish about the same. On other hand, Bhutanese players anticipate to get their custom clearance very soon and supply constraints should ease, bringing stability to the Ferro Silicon market.
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