Indian Ferro Silicon prices shot up this week amid supply breakage from the major producing countries supplying in India. Producers in Bhutan are out of stock and the traders are quoting higher prices for immediate delivery as the shipments from Guwahati remain delayed. The trading has resumed from Guwahati but the shipments are still delayed as the logistical problems persist. Ferro Silicon producers are wary of the increasing production cost as the Coke and Charcoal prices have increased. A Bhutan based producer shared that Ferro Silicon prices have gone up, but the longevity of the hiked prices is in question as downstream demand needs to pick up too. Currently, traders have limited volume and the manufacturers are out of inventory and there is a huge supply crisis for the material in the market.
In the domestic market, the prices in Bhutan and Guwahati increased to INR 72,000/MT Ex-plant for 70% grade. Export prices are at USD 1000/MT FOB India. Meanwhile, a deal was heard to be concluded at around USD 1025/MT FOB Kolkata last week. The Chinese market is also on an upswing due to tight spot supply in the said country, as the prices rose by USD 20/MT FOB China.
On the future outlook, the prices may increase further due to supply shrinkage. However, due to the tepid Stainless-steel market, the tendency of buyers to book at hiked prices is low.
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