Indian ferro silicon prices increased sharply in line with international ferro silicon prices. Earlier, ferro silicon producers were hesitant to increasing prices as buyers could look to procure from Malaysia. However, at the start of this week, the Malaysian offers increased to $1230-1250/t CNF India due to the tight container availability and higher freight cost.
Meanwhile, in line with tight global supply and anticipation of a bullish steel market, ferro silicon prices from Chinese picked up and Russia followed suit and increased their offers. This further supported the Indian producers, who are suffering from higher raw material and labour prices.
Indian and Bhutanese producers are facing higher prices for carbon material and particularly Bhutan is facing labour issues leading to an increased manpower cost. Currently, Bhutanese producers are offering ferro silicon 70% at INR 81,000-82,000/t with most of the transactions taking place at INR 81,000/t Ex-Bhutan. Meanwhile, the Guwahati producers also increased their offers to INR 81,000/t. However, very few deals were concluded at these levels from Guwahati.
The ferro silicon producers are now trying to stock material for the upcoming month’s bookings from steel mills as they hold a stronger position in the market, as imports wouldn’t be viable from Malaysia, China or Russia.
Outlook:
Market participants are of the opinion that the ferro silicon prices will go up to INR 85,000/t by mid-December in the current scenario.
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