Indian ferro silicon prices have increased sharply on improving demand in the domestic market and a shortage of material. Prices today were revised to INR 95,000/t in Bhutan and Guwahati. Meanwhile, few producers in Bhutan are also offering at INR 94,000/t.
Producers in Bhutan are now holding offers as they believe that in the current uptrend in the steel market, the short supply of ferro silicon might be advantageous and the prices might reach to INR 1,00,000/t very soon. Meanwhile, buyers of ferro silicon were also confirmed about such a price hike.
Guwahati producers are expected to keep their prices higher than the Bhutanese producers as the logistical situation is in their favour, as they can provide immediate deliveries unlike Bhutan, where the dispatches are delayed by up to 15days.
In the meantime, almost all producers in Guwahati are booked for the month and won’t be able to cater to the bulk orders. Thus, the increase in prices is inevitable.
Current Assessments:
- Ex Bhutan: INR 94,000-95,000/t;
- Ex- Guwahati: INR 95,000/t;
- FOB India: $1220/t;
- FOB China: $1295/t
The prices of raw material have also spiked, as the charcoal shortage has hit the market and the increasing coke prices is adding to the production cost.
Outlook:
Prices are expected to climb higher on the bullish sentiments as the supply issues intensify and the demand remains firm.
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