Ferro Silicon prices regained ground as limited availability coupled with demand from end-users that have run down inventories pushed prices up and firmed trade levels
Supply of Bhutanese Ferro Silicon into India remained constrained as few plants in Bhutan are shut for maintenance work. Due to the weakened Rupee, coupled with no taxation on exports in Bhutan – there is greater price parity in exports and there is also a surge in demand from European countries such as Germany and Italy confirmed a producer source from Bhutan. In Bhutan Ferro Silicon (grade 70-75) is being offered at around Rs. 75,000-76,000 /MT.
In line with the increased prices in Bhutan, Indian producers have also been able to hike their offers. Current price of Ferro Silicon (70-75) is Rs. 74,000 /MT in Guwahati. A producer source from Meghalaya revealed that they were holding back from offering material they had on hand, in the hope of even higher prices being achievable soon. He further added that the market is very volatile right now, and offer prices do not hold good the next day.
In Chattisgarh VA Power & Steel Pvt Ltd., Raigarh is presently shut for maintenance work and no genuine offers could be matched in the market. Coinciding with this, there is news of two new plants in Raigarh being commissioned, Singhal Energy and Steel Pvt. Ltd. and Chattisgarh Power, which will have a combined annual production capacity of around 35,000 MT, and is scheduled to be operational in a month's time.
SteelMint assessed that in the coming 1-2 weeks, Indian Ferro Silicon market should run steadily and prices may stay at current levels.
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