India: Ferro silicon prices increase further in Guwahati amidst supply crunch

Ferro silicon prices increased further in the Guwahati belt as the material is in short supply and demand is in the domestic market. Most buyers reported that dispatches from Bhutan are getting delayed, due to which the dependence on supplies from the Guwahati belt has increased.

Production of mild steel is hampered, due to a severe supply crunch in ferro silicon, pushing up prices continuously. Most of the producers in Bhutan are not offering below INR 118,000/tonne (t), while, few bulk deals were also concluded at around INR 115,000/t early this week.

Meanwhile, in Guwahati, most producers remain overbooked and are not offering below INR 127,000/t. Only limited and urgent trades were concluded.
Truck availability is an issue due to lockdowns in various parts of the country. Thus, dispatches remain affected.

Bhutanese suppliers are facing labour availability issues amidst border closures and increasing Covid cases in the country. This is also creating issues regarding material sizing and packing for Bhutanese producers.

Bhutanese producers are still trying to clear the backlog orders, and are, therefore, unable to take orders for immediate dispatches. Meanwhile, the disruption was intensified last week due to delay in extension of BIS certification.

Outlook
The ferro silicon market remains ambiguous as the challenge of steel mills closure and ferro silicon supply crunch looms ahead.