India: Ferro silicon prices inch down, BIS certification deadline extended

The past few weeks were filled with uncertainty over the extension of the BIS certification and the possible supply disruption as the Bhutanese ferro silicon plants had not yet got the license. Bhutan contributes significantly to India's ferro silicon consumption, accounting for two-thirds of total consumption. SteelMint learned from sources that the Bhutanese producers have filed their application and 12 Indian producers have received the license so far.

However, BIS has extended the deadline for the quality conformance of ferro silicon to 23 Apr 2021. We believe that by the next due date all Bhutanese producers will have the required certification.
Few producers in India were hopeful that no further extension will be provided and they will be able to hike prices on the back of supply cut from Bhutan. However, although a key raw material but only about 4-6kgs of ferro silicon is required to produce one tonne of steel. Keeping in mind the travel restrictions due to the pandemic an extension was anticipated and also providing an uninterrupted supply of the alloy to the steel industry is of greater significance.

Ferro silicon prices in Bhutan and ex-Guwahati are both assessed at INR 79,000/t amid a demand-supply mismatch. The buyers are negotiating for lower prices given the overall weakening ferro alloys market.

It is expected that there will be some marginal downtrend in the ferro silicon prices in the short term unless demand picks up from the steel and associated industries.