India: Ferro Silicon Market sees Increased Inquires

Ferro Silicon prices in Bhutan remained stable on the W-o-W basis. Meanwhile, in Guwahati, the prices of Ferro Silicon improved in line with the sudden shift of domestic demand from Bhutan to Guwahati. Dragged by the decreased inquiries from the steel market, most producers in the past had to decrease offers to solicit business even though the offers were below the production cost. However, due to the implementation of the Steel Import Monitoring System (SIMS), the imports have shifted temporarily to Guwahati. The waiting time for the deliveries has increased to 15 days and the producers are willing to replenish their stocks as they ran out of inventory and are not ready to wait long for the deliveries. Steel Import Monitoring System (SIMS) will require the importers to submit information 15 days ahead in an online system for importing an item. Moreover, higher demand from the export market has boosted the confidence of the Ferro Silicon Producers, "Although the demand is seasonal, as during winters demand from Europe increases and this time they are out of stock and hence, a good number of inquiries are coming in from Europe", shared a Bhutan based producer. "None of the producers who are trading in the retail market are operating at full capacity due to lower prices, which has checked the oversupply situation and many producers are out of stock and hence are increasing the prices now, this way even with the sluggish demand prices are increasing in the northeastern regions", shared another producer.

In the domestic market, the prices in Bhutan remained firm at INR 63,000/MT Ex-plant. Meanwhile, deals were heard to be concluded in Guwahati at around INR 64,000 - 65,000/MT for 70-75% grade. A few export offers for Europe were concluded at USD 950/MT FoB India.

Ferro Silicon prices in the future seem to be foggy as the hike in the price is due to the sudden heightened demand due to the confluence of factors in the domestic and export market. Producers are mostly in a wait and watch mode as the market remains volatile and unpredictable.