Indian ferro silicon prices correct further following price cut in Bhutan

Indian ferro silicon prices corrected marginally after a major Bhutanese ferro silicon smelter reduced its offers to INR 127,500/tonne (t). On the other hand, many Indian producers are still reluctant to reduce their offers and are still offering at higher prices. Demand in the domestic market was a little slow this week.

Current assessments are at INR 127,500/t ex-Bhutan and INR 129,500/t ex-Guwahati. Some deals from Guwahati were concluded at lower prices on special terms. Meanwhile, international prices went up amidst low production volumes and higher export tax from China. Current prices are at around $1,870/t FoB China. It is expected that prices in the domestic market should also pick up in the coming weeks.

Amidst increasing uncertainties of dispatches from Bhutan, many major buyers have stocked up inventory. Dispatches from Bhutan have now streamlined and thus the supply-demand dynamics have now reversed. However, it is expected that soon demand may pick up from the domestic market after the existing inventory with the buyers gets exhausted.
Meanwhile, there is strong anticipation that the north-eastern states may have to face a severe coke shortage, as the state government of Meghalaya has ordered the closure of all illegal coke factories operating in the East Jaintia Hills.

In addition, ferro silicon producers expect demand from the special steel sector to increase. A producer told SteelMint that though demand from mild steel and foundries is moderate, there are active inquiries from the special steel units.

Outlook
It is expected that prices may soon pick up and this bearish trend may fade. Meanwhile, international prices are expected to increase further in the coming weeks.