India: Ferro Silicon Prices not impacted by talk of Tight Supply

Ferro silicon prices are stable with having found support at these levels despite falling prices of other bulk Ferro alloys.

Bhutan-origin Ferrosilicon (70-75%) is being traded at INR 78,000/MT ex-Bhutan, as producers have confirmed steady operations. Export offers remain flat with most international buyers waiting on the sidelines. The material is being offered at around USD 1,310/MT FoB Kolkata.

“Demand is low but no downfall in prices can be expected, given lower supplies from Bhutan during winters,” highlighted a producer from Bhutan.

Similarly, in the Indian market, Ferro silicon prices are at the same level in the last two weeks. In Guwahati, 70-75% grade is being offered at INR 76,000/MT. Indian producers stated slowdown in spot demand will not affect current price range as during the winter months, supply is restricted.

“I’m not too certain the fall in supply of Ferro silicon from Bhutan will lead to higher prices; you have to look at the steel market in India,” stated a producer from Guwahati when asked if prices could increase as supply from Bhutan decreases in the winter months.

SteelMint learned that most market participants hold a pessimistic outlook towards the future market trend. Steel demand is not strong enough to support further gains in Ferro silicon price level, although contrary to general convention as prices do rise during this period of the year.

 Exchange Rate : USD 1 = INR 61.84