Indian ferrosilicon prices came to a standstill as bulk orders demand remained subdued. Under the influence of the Bhutanese labour issues, Guwahati producers have started quoting much higher prices than Bhutan for smaller orders. In this chaotic market, factories are reluctant to sell resulting in a cautious stalemate.
Meanwhile, dispatches from Bhutan have improved. However, labour issues still persist in the country as most of the labourers are from India and cross border travel has been a concern since the lockdown. Meanwhile, the increased carbon material prices along with increased international prices of ferrosilicon are helping to boost the confidence of the producers.
In Bhutan, the general prices are at INR 110,000/t, but for bulk orders, producers are ready to negotiate. Meanwhile, few producers who were short selling at INR 105,000/t have also increased their prices to INR 107,000/t owing to an uptrend in prices. In Guwahati, producers are quoting anything between INR 115,000-125,000/t depending on their inventory level. However, for bulk orders with favourable payment conditions, factories are ready to negotiate up to INR 107,000/t.
Outlook:
Despite sluggish demands from the mainstream market, ferrosilicon is expected to maintain the higher prices in the upcoming week with marginal shifts. This can be attributed to the overbooked producers and near to nil imports in the country for ferrosilicon.
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