Indian ferro silicon prices surged this week, propelled by supply disruptions due to the ongoing power crisis and revised power tariff in the north-east region. Ferro silicon prices surged by INR 3,000-7,000/t since the last assessment on 5 August 2022.
According to SteelMint’s assessment on 12 August 2022, most producers started offering at around INR 145,000 exw-Guwahati and Bhutan. However, some producers have started offering at INR 150,000/t but buyers are yet to accept. The majority of deals have been concluded at INR 145,000/t on exw basis.
The power crisis in Bhutan has prompted Indian smelters to increase offers as a situation of supply crunch might emerge.
China market overview
Ferro silicon prices (75%) in China fell by RMB 50/t ($7.4/t) w-o-w to RMB 7,800/t ($1,156/t) ex-Inner Mongolia because of the fluctuating domestic ferro silicon market. It was driven by the rise in futures prices which directly affected the prices of ferro silicon.
Ferro silicon futures for September delivery on the Zhengzhou Commodity Exchange (ZCE) declined by 2% to close at RMB 7,792/t ($1,153/t) on 5 August despite production curbs.
Outlook
Current market conditions indicate that ferro silicon prices are likely to rise in the short term due to imbalances between supply and demand in the domestic market.
Leave a Reply