Indian Ferro silicon producers raise offers to match Bhutan prices

Ferro silicon producers in India have decided to once again raise their offers to bring these on parity with Bhutan's prices released for the month of December.

There is limited supply from Bhutan and rising prices in China have prompted producers to keep prices firm.

Some major ferro silicon manufacturers in China have cut production and buyers are cautiously waiting for mainstream steel auctions for further direction. Additionally, some provinces have raised electricity tariffs. Therefore, it is expected that ferro silicon prices will remain stable in the short term amid sluggish conditions in China.

SteelMint assessed ferro silicon (70%) prices to be up by INR 10,000/tonnes (t) w-o-w to INR 200,000 / t exw-Guwahati, similar to Bhutan's offer.

Indian producers increased their offers after last week's market acceptance of INR 200,000/t prices from Bhutan for the 70% grade. Previously, Guwahati-based suppliers were offering INR 190,000/t on an ex-works basis.

Moreover, Indian producers have received many inquiries from seaborne buyers during the week. Due to their local prices being much higher than Indian prices, European countries are increasingly interested in Indian ferro silicon. This is also supporting ferro silicon prices in India.

Outlook
The 1,020-MV Tala Hydropower plant in Bhutan will be shut for three months from end-December, for inspection purposes and necessary repairs during the lean season, which might lead to power supply shortage. It is the country's largest power plant and a major contributor to domestic revenues. In such a possible scenario of tighter supplies from Bhutan, ferro silicon prices in India will likely remain supported.