India: Ferro Silicon Prices Unchanged; Likely to Go Up Soon

Prices of Ferro Silicon in India remains unchanged from both Bhutan and Guwahati in this week. However, prices may go up in the upcoming week on supply tightness in line with rising demand.

The push to clear inventories has restrained the producers from quoting higher prices. However, the demand is seen to be rising and supply situation could soon be tight in the upcoming week. Domestic prices in India were reported unchanged W-o-W at INR 80,000/MT for both Ex-Bhutan and Ex-Guwahati.

SteelMint learned from market sources that inquiries have started picking up in the domestic as well as global market. Indian and Bhutanese producers have reported several inquiries from buyers and traders from Europe and also the Middle East.

Tightening supply of Ferro Silicon is forecasted resulting from the suspension of production at a number of smaller Ferro Silicon plants around the globe. Many Ferro Silicon suppliers in China have shifted to the production of silicon carbide due to previous prevalent low demand; which has further tightened the supply of Ferro Silicon in the global market.

SteelMint assessed that supply situation will be particularly weak in Meghalaya and the other north-east region in India, as most producers are booked out. Therefore, with the inventories being consumed, a situation of low supply and high demand will be pushing up prices.

Most market participants believe that the supply and demand dynamics will be the main reason for the uptick in prices for Ferro Silicon in the upcoming week.