Bhutan: Ferro silicon prices fall early Sept, despite healthy demand

Bhutanese ferro silicon prices, which were stable last week, have fallen by INR 3,000/t w-o-w at the very beginning of the month. Currently, ferro silicon smelters are offering at INR 124,000/t exw-Bhutan. However, as per SteelMint's assessment, it was found that a few producers have still maintained higher rates.

Robust demand in the market

There is ample demand from exports as well as the domestic market. Guwahati-based producers are offering higher prices than Bhutanese smelters. Guwahati producers are booked and are not able to cater to the spot market. Currently, prices from Guwahati are hovering at around INR 127,000- INR 127,500/t exw.

Long-term contracts create material shortage

According to SteelMint sources, there were many tenders concluded by the government and major steel mills last month. Most of the major producers will be busy catering to large-scale steel makers, which might result in a shortage of ferro silicon in the market.

Chinese ferro silicon gains upward momentum

Ferro silicon prices in China have spiked due to production curtailment owing to the new round of stricter production restriction policies in Ningxia province, the main production hub of ferro silicon. The upswing in prices of ferro silicon supported the Chinese steel bids in September.

Container unavailability generates low interest in export

Producers are ignoring export inquiries due to a severe shortage of high-cost containers. Some producers are facing difficulty to complete their monthly target Due to fact that they aren't accepting orders from seaborne buyers. However, good demand from the domestic market could fill the pit to reach the monthly target.