India: Ferro Silicon Demand Improves in the Northeast Region

Indian Ferro Silicon prices increased in line with the supply shortage in the major producing areas. Most producers are out of stock and that's the main reason for the prices to be escalating. The inflating prices are the outcome of the supply-demand dynamics in the country. Many producers had to reduce their production quantities in the previous month due to bottomed out Ferro Silicon prices; this however tuned out to be advantageous for the producers as the supply shortage has turned the market and provided with some positive trend. A Ferro Silicon buyer shared with SteelMint that the logistics issue due to SIMS is now streamlined and there is no difficulty in ordering the material. The market is relatively active and the manufacturers have orders. Meanwhile, in the Chinese market, exports still remain affected, mainly due to high tariff restrictions and fierce international competition in the market.

In the domestic market, the prices from Bhutan increased significantly amid supply shortage and the current prices are at INR 64,000- 65,000/MT for 70% grade. Meanwhile, deals are being concluded at INR 64,000/MT in Guwahati. In the Export market, the demand remains tepid, however, the prices are unadjusted and hence the market remains stable.

On the future outlook, producers feel that the prices may remain stable for now as the demand is improving and the producers are low on inventory. Therefore, the turbulence in the supply-demand dynamics will govern the pricing of Ferro Silicon.