Ferro Silicon producers continued to offer at stronger levels as they were confident of finding buyers
On account of increased demand and low production in India, Ferro Silicon producers in Bhutan continued to offer at stronger levels as they were confident of finding buyers. Although prices seemed to level out last week, sources believed that an increase in inquiries for the Alloy this week has triggered the slight increase in the mainstream price for Ferro Silicon. In Bhutan Ferro Silicon (grade 70-75) is being offered at around INR 78,000 /MT. However, some producers whose furnaces were not operational due to maintenance work have resumed operations, and are offering Ferro Silicon (grade 70-75) at a discounted rate at INR 76,500 /MT to get back into the market.
In line with the increased prices in Bhutan, Indian producers have also been able to hike their offers. Current price of Ferro Silicon (70-75) is INR 76,000 /MT in Guwahati. Moreover, power tariff in Bhutan is expected to go up again by 20%, in addition to the Charcoal prices and Freight charges that have already gone up substantially.
There is an upsurge in demand for Bhutanese produced Ferro Silicon. A source at one of the major Ferro Silicon producers in Bhutan revealed that they have concluded deals with German, Italian and Brazilin companies in the last 10 days, in the range of USD 1270-1280 /MT FOB Bhutan.
On future trend, demand is expected to be intact and as less production is expected during the winter months, supply could be very tight although this is unlikely to lead to shortages and future price trend would be influenced largely by the exchange rate rather than demand, as the Bhutan-based Producers are enjoying no taxation on exports.
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