India: Ferrosilicon prices unchanged for four consecutive weeks on balanced demand-supply dynamics

Indian ferrosilicon prices remained stable w-o-w on stable supply-demand dynamics.
Meanwhile, the demand from domestic steel mills remains strong due to the increasing prices of semi-finished steel products. Most of the producers are fully booked and have good inquiries in the domestic market. There is a scarcity of material in the market and thus prices are stable on the higher side.

Currently, prices in Bhutan are at INR 100,000/t and in Guwahati at INR 101,000/t ex-works. Most producers resisted offering in exports due to better demand in the domestic market. Meanwhile, few producers in Guwahati are quoting higher than the stated prices.

Key highlights of the week:

• Bhutanese shipments remain affected
  Dispatches from Bhutan still remain affected as the borders remain sealed till this weekend due to ongoing elections in the Indian state. Meanwhile, most producers have already taken orders which are being lined-up for deliveries after the border opens. This has created a supply crunch in the market and producers remain with their offers in Bhutan.
• Producers in Meghalaya still uncertain about the load shedding
  Ferrosilicon producers in Meghalaya are facing severe load shedding problems and power cuts from the past month. Producers shared with SteelMint that the grade of the material keeps getting affected due to the continuous load shedding and the producers are forced to utilize more power to keep the grade of the material in check.
• Labour issues from Bhutan remain persistent
  Bhutanese producers are persistently facing labour issues since past year; therefore, the sizing and packing remains a challenge for the smelters. Meanwhile, due to the ongoing lockdowns in various states of India, the Bhutanese producers remain wary of further dispatches and logistics issues after the border reopens.
• Chinese ferrosilicon market continues to be pessimistic
  Ferrosilicon prices in China is continuously declining and pessimism continues to drive in the market. Export prices from China dropped to $1,400/t fob China for 75pc, while few quotations remain as low as $1,370/t. However, this is not supposed to hamper the Indian market much due to the ongoing supply concerns from both the major producing regions viz., Bhutan and Guwahati.