India: Ferro silicon prices stable but expected to go up

Indian ferro silicon prices are stable in Guwahati, while down by INR 1000/t in Bhutan. However, a few plants in the North-East are not operational, in addition to that, no imports are arriving, which might create some supply concern in the domestic market. Moreover, there is also a shortage in the market due to various logistical issues and labour unavailability.

India's crude steel production increased by 10% m-o-m in Jul '20. There has been a gradual upswing in production since May-20. This also gives hope to the producers of ferro silicon for increased demand. The transactional price currently is at around INR 70,000-71,000/t Ex-Bhutan and INR 71,000-72,000/t Ex-Guwahati.

Major producers from North East commented that the demand is moderate, however, the supply and dispatches concern from Bhutan, is an advantage for them as they are receiving higher demand.

There is a notion in the domestic market that the supply issue might elevate the prices. Along with the supply concern, the demand from stainless steel and the aluminium industry might come up soon with an increase in the running capacity, as this may also provide support to the prices in the coming days.