India: Ferro Silicon Prices Firm on Balanced Demand-Supply

Ferro Silicon prices remain unchanged amid some supply disruptions due to very heavy rainfall in the North-East States of India, however, demand is intact.

In Bhutan, there is steady demand for the Ferro Silicon and producers have kept prices unchanged. Reportedly, the producers and traders from Assam and Arunachal Pradesh are witnessing trouble in logistics due to very heavy rain and landslides.

SteelMint assessed the price for grade 70-75 at around INR 71,000/MT (Ex-Bhutan) and INR 69,000/MT (Ex-Guwahati). However, some bulk deals were also reported at INR 69,000/MT for Bhutan-origin Ferro Silicon.

"There has been hype about GST in the market, creating demand constraint. The traders with excise registration will not face any risk with stock in their inventory," said a source when inquired about the new tax regime. He said that traders with non-excisable stock need to maintain low inventory as they will be hit the hardest.

In the export market, demand from overseas has been reportedly good and there have been an increase in inquiries for Bhutanese Ferro Silicon. Taking into account a healthy demand, export offers are assessed to be at USD 1150/MT (FOB Kolkata).

The present scenario suggests a steady market in the coming 1-2 weeks and a chance of any correction is unlikely.