- Indian ferrosilicon producers have escalated their offers by 15% ex-plant w-o-w
- High domestic demand and lockdown in Bhutan are the key factors
- SteelMint understands that once imports resume prices might come back to the levels of INR 75,000-80,000/t
Indian ferrosilicon prices initially went up in line with the international cues and since then have continued to increase till present. The increase in the prices was supported by the increasing steel prices in the country and the lockdown in Bhutan. This led to an increased supply crunch in the market, as producers weren’t able to dispatch materials on short deadlines.
Due to lockdown in Bhutan, Guwahati producers escalated their offer levels early this week. Bhutanese producers are now offering material at INR 1,10,000/t Ex-plant and Guwahati producers are offering at higher levels, but not many deals were recorded from Guwahati.
Producers are now more interested in the domestic market than exports as export prices are lower than the domestic market. On the flip side, due to higher domestic prices now, the chances of imports increase. Many traders believe that once imports start flowing in, prices might come back to the normal levels of INR 75,000-80,000/t.
Outlook:
Prices of ferrosilicon in the Indian market are expected to increase for the short term till imports overtake the market. Meanwhile, the demand is still remaining moderate in the market.
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