Indian ferrosilicon prices corrected by INR 2,000/t in Bhutan by some producers who were high on stocks. However, this didn’t affect Guwahati and the prices remain firm. Most of the producers in Guwahati are firm at their offers as they have enough orders for the month and remain bullish on better international prices.
Meanwhile, most Bhutanese producers remain booked for the month and are not offering in the domestic spot market. While few producers who have enough stock have reduced their prices to liquidate stock before the financial year-end. There is a firm belief in the market that once the sales are achieved, prices will soon bounce back to INR 98,000/t.
Meanwhile, Bhutanese producers continue to face labour-related issues, that is creating an issue for bulk dispatches. The Meghalaya based smelters are facing the challenge of producing ferrosilicon with the ongoing power cuts.
Meghalaya reinstates load-shedding hampering production activities
The Meghalaya Government on Tuesday once again resorted to load-shedding due to problems over the Letter of Credit for the National Thermal Power Corporation (NTPC). This has put the ferrosilicon plants of Meghalaya under production cuts and smelters without captive powerplant are expected to reduce their production by around 50%.
International Market:
China
Chinese ferrosilicon prices went up after shutdowns of various regions in Inner Mongolia were announced. Currently, producers are quoting at $1410-1450/t FOB China. Meanwhile, the prices are expected to go higher in the coming weeks. Most producers remain firm on their prices amidst ongoing supply tightness in the country.
Europe
Indian producers have noticed that the demand for ferrosilicon is in an upsurge in Europe. European buyers are willing to pay $1,600/t CFR Europe for prompt deliveries. Indian and Bhutanese producers have concluded many deals with Europe at $ 1,400/t Fob India for April deliveries. Prices in Europe are not expected to ease in the coming month as well owing to lowered production in the international market.
Outlook
The supply of ferrosilicon is expected to be constrained in the coming weeks and the prices from Bhutan is expected to revert to INR 98,000/t. The demand from the international market seems to remain bullish and the supply tightness in Europe is expected to continue amidst higher freight constraints and reduced production globally.
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