Bhutan ferro silicon prices drops by INR 2,000/MT as Malaysian ferro silicon material comes into Indian market.
Prices of ferro silicon sharply fell this week in Bhutan as sources attributed it to Malaysian material entering the Indian market. Few Indian companies have started buying from Malaysian based companies, that have started operation last year and are procuring material since last month. Ferro silicon imports in India are duty-free from Malaysia, in accordance with the trade agreenet singed by the Government for AESEAN countries w..ef 1 Jan 2015. In September’15 more than 1,700 MT of Malaysian origin Ferro Silicon has arrived at various Indian ports like Kolkata and Vizag. The Silicon (Si) content of the material is in the range of 65-70%, and the average CIF price for the same is around USD 985 /MT.
Producers in Bhutan also reported of shortage in supply as few plants have shutdown operation for maintenance. The reduced offers now stand at INR 67,000/MT (Ex-Bhutan).
“Even with shutdowns and production cuts prices have gone down. Demand in the export market was also muted as European buyers are not purchasing any material. Ferro Silicon market has subdued,” stated a producer from Bhutan.
Indian Ferro Silicon Prices Static
Trade levels in Indian origin Ferro Silicon remains modest with market participants suggesting continuing weakness in demand which is preventing recovery in prices.
Producers in the North-East are also weighed down by the entry of Malaysian Ferro silicon material. Demand for the Indian material has been poor for several weeks with prices remaining at the same level W-o-W. Current prices for grade 70-75 are INR 65,500/MT (Ex-Guwahati).
A producer source from Meghalaya stated “If prices have gone down in Bhutan we will also lower are offers in order to remain competitive in the market.”
Market sources said they did not hold positive near-term views as market sentiment is poor with many anticipating further price fall.
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