Ferro Silicon prices regained as sources reported of stronger trade levels, as the market faces some shortage of supply.
Ferro Silicon offers have risen on improved demand and constant supply. Currently, grade 70-75 is being offered at around INR 77,000/MT (Ex-Bhutan). Bhutanese producers reported of supply crunch in India, as few small plants in Meghalaya are not operating which led to price rise. Along with this, there is good demand from some Indian companies, and one of them is Steel Authority of India (SAIL). The export market witnessed moderate demand from European buyers. Ferro Silicon is being offered at around USD 1,370 /MT FoB Kolkata.
[su_quote]“We have increased our offers in the market, although trading has not been done at this level. I believe the price will be soon acceptable, as the market is facing a supply crunch,” revealed a Bhutan based producer.[/su_quote]
In the Indian market, Ferro Silicon prices were unaltered as sources reported of good demand at this level. It is being traded at INR 74,000/MT (Ex-Guwahati). Reportedly, due to the earlier hike in power tariff by 70 paisa per unit in Meghalaya, many smaller production units in the North-East has closed. These plants are still not operational and any increase in demand will likely to result in higher offers as supply is limited.
On the future outlook, SteelMint learned from market sources that prices will remain at this level for near-term, as there is tight availability of material along with expectation of moderate demand till the financial budget is announced.
Exchange rate: USD 1= INR 59.65
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