In India, Assam is one of the major Ferro Silicon producing states. With the recent tiffs due to protests against CAB in the state and ongoing curfew in the region, trades are extremely affected. All the trades have been canceled since last week from Guwahati. Although the plants are operating, the dispatches have been stopped and the procurement of raw material as well as selling of Ferro Silicon is affected. In the midst of such a situation, to cater to the demand of Ferro Silicon, the Bhutanese Producers sold most of the part of their inventory at INR 67,000/MT. However, the stock with the producers in Bhutan is also limited and the Bhutanese producers are dependent on imported Coal from the Northeast region. Thus, if the curfew continues for a longer time, the Bhutanese producers will be forced to shut down their operations as they will go out of stock for coal and new orders will take time to reach.
In the domestic market, the prices in Bhutan and Guwahati are at INR 67,000/MT Ex-plant for 70% grade. Although the quotations are the same in Guwahati, all trades are suspended since last Tuesday. Export prices are at USD 1020/MT FOB India. Due to increased inquiries from the export market, most Bhutanese producers sold their material are were low at inventory. Therefore, owing to the supply-demand dynamics, the domestic buyers bought the materials at INR 67,000/MT from Bhutan, which they were not accepting previously. However, traders are heard to be making deals at much higher prices than the stipulated levels to clear their inventory.
On the future outlook, the prices may remain stable, as the producers are low in inventory. However, the producers are still in a wait and watch mode until the vulnerabilities pass and the state comes to peace once again.
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