India: Power curbs push up ferro silicon prices

India's ferro silicon prices inched up by INR 1,900/t exw w-o-w on improved demand and production curtailment due to power cuts.

According to SteelMint's assessment on 28 April 2023, Guwahati-based producers were offering at around INR 121,000-124,000/t exw, while offers in Bhutan were hovering at INR 122,000-124,500/t exw for 70% material.

Market highlights-

• Demand improves: Indian buyers began putting out enquiries after they realised that costs would rise soon due to a shortage of material as a result of production cutbacks in Guwahati.
  
  
• Loadshedding in Meghalaya to continue till monsoon: Current power outage in Meghalaya is anticipated to last until monsoon because of the state's unpredictable rains. As a result, the Leshka Hydroelectric Power Project, a significant source of power, has been shut down. There is 32% shortage of power that is still impacting the production and producers' revenue.
  
  
• Producers hold back offers: Several ferro silicon producers from Bhutan and Guwahati reportedly withheld their offers due to expected price increase. Meanwhile, few of them are currently busy catering to previous orders. As a result, very few sellers were trying to take advantage of the market's lower level of competitiveness.
  
  

China's market overview

Ferro silicon (Si: 75%) prices remained around RMB 8,200/t this week, down marginally by 0.73% compared to last week. Prices were on a slower trend throughout the week as producers were hesitant to restock inventory before the Labor Day holidays and were more interested in exporting. The fresh round of steel mill bidding also prevented price increase. So, overall, the market is expected to follow the same trend in coming few weeks due to sufficient inventory space and strong cost support.

Outlook

The North East region is suffering from the misery of load shedding, and relief is nowhere in sight because the government has stated that load shedding is unlikely to end anytime soon. According to reports, this might have an impact on production and pricing levels in near term.