The SAIL tender of ferro silicon for a quantity of 9,370 MT, and L1 has been awarded to a Bhutan based company at substantially higher prices, with respect to the open market. The said company has to supply 6,000 MT of the material to SAIL.
The SAIL tender has created a shortage of supply in the Indian market. The L1 Company will most likely be sourcing material from other Bhutan-based companies as it cannot supply 6,000 MT of the material. The total consumption of Bhutanese ferro silicon in the Indian market on an average is 10,000MT, but with the SAIL Tender, Bhutanese producers have lesser material to offer in the Indian open market. One of the major producers in India, Tata Steel has also increased its regular purchase volume from Bhutan.
More Tenders in The Pipeline
There are two RINL tenders also in the pipeline, out of which one is for 1,400 MT which will expire on 2nd May, and the other of 6,000 MT which will expire on 12th May. Bhutan based producers are awaiting its result as they are hopeful of achieving higher prices for these tenders as well.
SteelMint assessed currently, grade 70-75 is being offered at around INR 62,000-63,000/MT (Ex-Bhutan).
Indian Ferro Silicon Prices Holds Firm
Indian ferro silicon market is unchanged W-o-W, with prices holding firm on steady demand.
SteelMint assessed currently, grade 70-75 is being traded at around INR 60,000/MT (Ex-Guwahati).
SteelMint learned from sources that there is confidence in the market for ferro silicon as most market participants are holding an optimistic outlook that prices could strengthen further in the coming month.
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