India: Ferro Silicon Prices Remained Stable Despite Short Supply

Indian Ferro Silicon prices remained stable amid short supply situation in Bhutan. Meanwhile, the supply of Charcoal is being eased up from earlier, but the problem in acquiring the material persists. However, producers feel that the situation may be normal in a few weeks. There is not much port movement from China, which has created material supply disruptions. In addition to this, a major Malaysian Ferro Silicon producer has shut down its two furnaces amid raw material disruptions due to Coronavirus.

In the domestic market, the offer prices for Bhutanese Ferro Silicon increased to INR 90,000/MT Ex-plant for 70% grade. Meanwhile, offers from Guwahati based producers are also at around INR 90,000/MT Ex-plant. In the export market, inquires have increased, but the producers are reluctant as the domestic prices are more beneficial in the present market conditions.

On the future outlook, the producers are expecting the prices in the domestic market to soar up amid increasing demand. However, the producers are in a wait and watch mode as to how the market behaves when the Chinese market participants return.