Indian Ferro Silicon prices improved in November amid short supply in the market and improving demand from overseas. In the first week of December, the prices escalated in line with the increased inquiries from the export market. Buyers in the domestic market are still adamant on lower prices, however, the producers are firm with the prices. Not many deals are happening in the domestic market, due to increased prices and low demand.
In the domestic market, the prices in Bhutan and Guwahati increased to INR 67,000/MT Ex-plant for 70% grade. Export prices are at USD 980/MT FOB India. Meanwhile, a deal was heard to be concluded at around USD 1000/MT FOB Kolkata.
The prices in the export market may increase further in the coming days. The imports of Ferro Silicon in India, increased by significant levels in Oct’19, by 170% on M-o-M basis. Out of the total imports, 86% was from Bhutan, the prices were comparatively much lower in October. Post-October, the prices started surging up after the supply shortage situation hit the northeast and Bhutanese market.
On the future outlook, the prices of Ferro Silicon may continue at higher levels in the domestic market for a short while. However, the long-term prices cannot be predicted, amid negligible acceptance for the higher prices in the market.
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