Indian ferro silicon prices have been touching new highs week after week. Current prices of the material are assessed at around INR 145,000-150,000/tonne (t) ex-Guwahati. In Bhutan, the prices are at INR 140,000/t exw, significantly up after major producers here sold out their monthly allotments, leaving limited quantities to offer in the spot market.
Buyers in the domestic market are more focused on bagging the material. However, they are a little worried about prices due to the scarcity of ferro silicon in the market. Dispatches are still lagging from the Bhutan plants, while production in the north eastern region is limited.
The labour issue continues to be a major concern in the Bhutan market, which is disrupting immediate dispatches of the material. In addition, increased container shortage is also pulling back Bhutan’s producers from taking advantage of strong demand in the international market.
The international market remains strong, limiting the option of imports for the buyers. Malaysian smelters recently resumed their operations and are still slow at production. Russian manufacturers will face around 15% of export tax from next month. Production in China is also down due to power curtailment in the Ningxia region. Therefore, it is widely accepted that supply will remain tight for the coming months in the global market which is driving up international prices.
Outlook
With an increased supply crunch in the domestic and global markets, smelters remain optimistic about further increase in prices.
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