Indian ferro silicon prices increased further amidst the supply crunch from Bhutan. Bhutan’s producers are still dispatching their old orders and not available for immediate deliveries.
Indian ferro silicon prices increased further from INR 129,000/tonne (t) to INR 132,000/t ex-plant. However, producers are even quoting higher prices for bulk orders.
Meanwhile, Bhutan’s producers are not offering any material in the market at present. They are waiting to quote a new round of ferro silicon offers for next month.
A trader from northern India told SteelMint, that imports are available at around $1,645/t CNF India, but shipments will not arrive before a month. However, due to the higher prices, buyers are hesitant to book any bulk orders and mostly procuring small volumes through immediate shipments.
Moreover, producers from Bhutan are facing severe labour shortage which is creating a huge backlog of orders. These producers are facing breaking and sizing issues due to a shortage of low and semi-skilled labour amidst lockdowns and increasing number of cases. However, Bhutan’s exporters are also missing out on taking advantage of the higher international prices and bullish market sentiments. The producers are facing problems in trading due to the increasing number of Covid cases in neighbouring India, from where (Kolkata Port), most of their trade takes place.
Outlook
Producers feel prices may go up further as the smelters are booked for the next month. Meanwhile, increasing silico manganese prices and higher demand from mild steel mills are boosting sentiments in the domestic ferro silicon market.
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