Indian Ferro Silicon Prices increased in the past week due to reduced supply as many major producers in Bhutan go out of stock. Since the past week, the buyers are keeping an inventory to avoid any disruptions in production due to the implementation of SIMS. Due to this factor, the demand has increased for now, and as many producers went for shutdown in the major parts of the country, the supply is tightened which turned out to be an added advantage for the Ferro Silicon Producers who are producing in the current market. The supply-demand dynamics played its role and the prices increased. On the contrary, the general sentiment is that the prices may correct in the coming few weeks.
In China, the Ferro Silicon Prices remain firm despite subdued demand while in Europe; the market has been steady for two consecutive weeks despite no reported trades, with tighter supply underpinning spot prices. In China, the tighter supply of Ferro Silicon has kept the producers from selling much material. The number of producers for 75% grade Ferro Silicon is limited and hence the competition among the producers or the selling pressure is low. Magnesium producers, who are the major consumers of Ferro Silicon, are reluctant to accept current offer prices due to falling magnesium prices.
In the export market, the competition is much tougher, as there are much lower offers from suppliers in Malaysia. However, countries like India, China, and Russia have not lowered their offer prices till now, resulting in a steady market. In the domestic market, the prices in Bhutan remained firm at INR 63,000/MT Ex-plant. Meanwhile, deals were heard to be concluded in Guwahati at around INR 64,000 – 65,000/MT for 70-75% grade.
On the future outlook, the prices may seem to continue to trend upwards in November but expected to soften in the future.
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