Indian Ferro Silicon offers are witnessing a continuous rise on the backdrop of high demand and limited supply.
“Malaysian producers are booked until the end of October and are not taking new orders, while flood caused supply disruption from Russia,” said a producer source indicating that the commodity is only available from Bhutan and the North-East. He further revealed that Indian and Bhutanese producers are gainers in this scenario as the situation prompted them to raise their offers.
Ferro Silicon offers have jumped again on account of the demand-supply mismatch at INR 80,000/MT (Ex-Guwahati) and (Ex-Bhutan). However, the sell-side players are trying to pull up the prices to INR 85,000/MT.
Seaborne demand for Ferro Silicon from the Middle-East and Europe has also supported its higher prices. A producer source revealed that Bhutan has been unable to dispatch lately but it will resume within a few days after the backlog has been cleared.
Ferro Silicon 70% has been assessed at USD 1300/MT FOB India but the producers are quoting at USD 1400/MT as they are confident about the same in view of the present scenario and firm prices in China.
With the constant rise in demand, the market participants were observed to be bullish as they are expecting the elevated prices to find acceptance very soon.
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