India: Ferrosilicon prices stable amidst healthy demand
Indian ferrosilicon prices are unchanged w-o-w owing to healthy demand from domestic steel mills. Most of the producers have healthy orders in hand and are fully booked for the upcoming weeks. Although there is a minor halt in inquiries owing to the financial year-end in India, yet the producers are not worried as they are confident that new orders would come in from the beginning of April.
Currently, prices in Bhutan are at INR 100,000/t and in Guwahati at INR 101,000/t ex-works. Meanwhile, export prices also remained stable at $1,450/t FoB India.
Key Highlights of the week:
Meghalaya producers in a sticky situation regarding power
Meghalaya producers with no captive power are worried about the uncertainty regarding power supply. Though, for now, electricity is being supplied by the state, yet the ambiguity over the power supply remains. Thus, the production from Meghalaya remains unaltered in the month.
Shortfall in supply from Bhutan
Bhutanese producers reported that the supply is constrained in the market. Most remained sold out with only a limited quantity to offer in the spot market. Currently, many producers are quoting INR 99,000/t Ex-Bhutan, while major producers are offering at around INR 100,000/t Ex-Bhutan.
Export inquiries increase
Inquiries from the export market, especially from Europe, has increased. European demand is higher and the buyers are willing to pay up to Euro 1600/t for CFR Europe. However, producers are not taking many export orders due to sizing and packing issues from Bhutan. Meanwhile, few deals were concluded at around $1450/t Fob India.
Labour issues from Bhutan refrained producers from taking export orders
Although there is an increased inquiry from the export market, Bhutanese producers cannot take full advantage of the situation. Bhutanese producers are facing labour problems, due to which sizing and packing of the materials is an issue for the producers and they cannot cater to the specific size requirement of the European consumers.
SAIL concluded ferrosilicon tender
SAIL conducted a reverse auction for 14,500t ferrosilicon yesterday of 70% min. grade for various plants of SAIL. As per the market sources, the tender was awarded at INR 104,500/t delivered. It is expected that this will further shrink the supply in the domestic market and lend support to prices.