Category Archives: Ferro Silicon

Indian ferro silicon prices

India: Ferro silicon prices touch new highs on increased demand

Indian ferro silicon prices have been touching new highs week after week. Current prices of the material are assessed at around INR 145,000-150,000/tonne (t) ex-Guwahati. In Bhutan, the prices are at INR 140,000/t exw, significantly up after major producers here sold out their monthly allotments, leaving limited quantities to offer in the spot market.

Buyers in the domestic market are more focused on bagging the material. However, they are a little worried about prices due to the scarcity of ferro silicon in the market. Dispatches are still lagging from the Bhutan plants, while production in the north eastern region is limited.

The labour issue continues to be a major concern in the Bhutan market, which is disrupting immediate dispatches of the material. In addition, increased container shortage is also pulling back Bhutan’s producers from taking advantage of strong demand in the international market.

The international market remains strong, limiting the option of imports for the buyers. Malaysian smelters recently resumed their operations and are still slow at production. Russian manufacturers will face around 15% of export tax from next month. Production in China is also down due to power curtailment in the Ningxia region. Therefore, it is widely accepted that supply will remain tight for the coming months in the global market which is driving up international prices.

Outlook
With an increased supply crunch in the domestic and global markets, smelters remain optimistic about further increase in prices.

 
Ferro silicon Prices

India: Ferro silicon prices increase further on supply shortage

Indian ferro silicon prices rose further to INR 143,000/t ex-works (exw), an increase of INR 3,000/t w-o-w.

Meanwhile, in Bhutan, a major producer released its prices yesterday which are INR 2,000/t lower than the market prices of INR 134,000/t. This brought down the prices for a short period of time.

It is expected that, in a week, the prices in Bhutan will increase too after producers sell sufficient volumes in the market. Current prices in Bhutan are at around INR 134,000/t. Although many bulk deals happened at INR 132,000/t after the producer released their prices, the dispatches happened only after a week at least.

For ready dispatches, the deals in Bhutan were concluded at around INR 140,0000/t exw.
As per market sources, there is an increased number of inquiries from the export market, but the producers remained more focused on the domestic market. The supply-demand mismatch has driven the prices to sky-high levels. Therefore, the domestic market remained more lucrative to the Bhutanese and Indian smelters. Issues relating to container and labour availability are also discouraging the smelters from exporting.

Meanwhile, the international market remains strong with Chinese offers at $1,820/t FoB for 75% grade material. However, due to the import duty from China, the Indian buyers are losing interest in importing ferro silicon at higher price offers.

Outlook
Indian smelters are hopeful that the prices may increase further as none of the producers have enough volumes to cater to bulk orders for immediate dispatches. But, considering the tepid steel market, buyers are resisting bulk orders, resorting only to buying in smaller parcels.

 

 
Ferro silicon Prices

India: Ferro silicon prices stable w-o-w; market optimistic

  • Prices of ferro silicon stable w-o-w.
  • Most dispatches of past two months cleared.
  • International market bullish.

Indian ferro silicon prices have been increasing over the past few weeks amidst severe supply shortage. Most of the Bhutan producers have cleared a lot of backlog orders of the past two months and are now ready to book fresh orders. However, supply still remains an issue due to labour shortage.

Currently, prices are at INR 135,000/tonne (t) exw-Bhutan and INR 140,000/t ex-Guwahati. There are a lot of active inquiries from the export market, but due to decent prices in the domestic market and labour issues in Bhutan, producers are mostly interested in catering to the domestic market.

Imports from Bhutan increased by 45,820 t in May’21, due to the clearance of most of the backlog orders. Dispatches from the country suffered substantially in Apr’21 with only 185 t of ferro silicon dispatched, which hindered the supply chain cycle. The backlog dispatches of the past two months have been, however, collectively cleared this month.

Meanwhile, Guwahati producers are also booked and offering at higher prices compared to Bhutan. Due to delayed dispatches from the latter and irregular imports from countries other than Bhutan, most of the buyers who are in urgent need of the material are being forced to book at higher prices from the Guwahati producers.

Demand in the international market remains strong as the major Malaysian ferro silicon producer is out of the market due to increased Covid cases. Chinese production has also reduced due to power curtailment in the major producing areas. Although, prices in China remained stable w-o-w, market sentiments were bullish due to increased demand.

Outlook
Producers in Bhutan and India believe that ferro silicon prices may increase further due to higher demand and constricted supply. As many producers are tied up with bulk tenders, there is an increased chance of supply shortage in the market which will further drive up prices.

 
Ferro silicon Prices

India: Higher domestic demand bolsters ferro silicon market

Demand for ferro silicon from various regions in India has increased over the 2-3 weeks, with producers receiving a steady spate of inquiries. With availability limited, sellers have continuously raised their offers.

SteelMint’s assessment for HC 70%from Bhutan is at around INR 134,000/t, which is a multi-year high price.

Availability is tight with most of India’s and Bhutan’sproducers booked till next month. They only have very limited volumes to offer in the spot market. Domestic prices have taken a huge leap of INR 10,000/t m-o-m to touch INR 140,000/t ex-Guwahati as the race for booking materials gains momentum.

Market participants expect the prices to rise further on tight supply and the buyers are willing to secure more materials seeing the uncertainty in procuring the same. The labour shortage in Bhutan is aggravating the issues of limited dispatches.

Meanwhile, suspended production from major smelters in Malaysia and the rising cost of Chinese exports have further boosted the market for ferro silicon in India.

Chinese prices of ferro silicon increased due to higher power tariffs and production curbs in Ningxia, which is the bulk producing region for the country. The local government in Ningxia asked the smelters to cut down production by 30% this month and by another 30% till the year-end. Ningxia caters to around 27% of the total production of ferro silicon in China and the recent curbs might take around 30-kilo tonne (kt) out of the market.

In addition, the number of inquiries in China has spiked, due to suspension of operations at Malaysian plants due to Covid cases. This has further shored up sentiments, creating a case for further hikes in prices. The current FoB prices from China are at around $1,820/t for 75% grade ferro silicon.

The situation is similar in India with an increased number of export inquiries. But the smelters are unable to cater to these due to supply shortage and sizing issues because of labour unavailability.

However, the supply shrinkage is taking a toll on domestic dispatches as well. A trader told SteelMint that, even after paying a hefty amount of INR 135,000/t, they are not assured of ready dispatches. The number of trucks is limited and it takes at least 10-15 days for any dispatches.

Bhutan is still struggling to deliver the previously booked dispatches and most of the plants are refraining from taking new orders.

In Guwahati, the situation seems similar as the production volume is limited while the inquiries have increased two-fold, due to lower imports from Bhutan and third-party countries.

Outlook
Domestic demand is expected to hold steady and rise by next week as steelmakers and traders contest to book and receive the material.
Some producers also suggest that current prices might increase to record highs, and this is the first time when, even at higher prices and premiums, buyers are unable to get the material at the desired time.

 
Chinese ferro silicon prices

China: Output controls in Ningxia to impact ferroalloys production

Many cities in north-west China’s Ningxia province – a ferroalloys and steel production hub – have been asked to curb output in order to reduce energy consumption, as per latest reports. Depending on energy consumption quotas, producers have to slash output by 30% in Jun’21 and again by 30% from Jun-Dec’21. Zhongwei and Shizuishan cities in Ningxia are major production centres of ferrosilicon and ferromanganese. Earlier, too, the local government had asked ferroalloys facilities in Inner Mongolia province to reduce electricity consumption. News of possible output curbs in Ningxia has reportedly fuelled a price rise.

 
Ferro silicon Prices

Bhutan: Ferro silicon prices jump further amidst supply concerns

Bhutan’s major ferro silicon plants hiked their offers to INR 120,000/tonne (t) owing to increased demand but supply constraints. The previous bookings were concluded speedily but now the producers are not accepting any new orders at these prices. They told SteelMint that they expect prices to increase soon as demand for ferro silicon increases.

Meanwhile, Guwahati-based producers are offering the material at higher prices as they are booked for the month. The quotations have reached around INR 140,000/t, while the most traded quantity is at INR 135,000/t. Most of the deals from Guwahati are for small volumes.

International prices of ferro silicon have also picked up and Chinese offers are at around $1,700/t FoB China. Meanwhile, OM Holdings, a major ferro silicon producer, has also closed operations at its Sarawak unit, which has boosted sentiments in the international market.

Currently, prices of imported ferro silicon are hovering at around $1,725/t for 75% FeSi, which are higher than domestic prices. However, the supply constraints from Bhutan and north east Indian plants are forcing buyers to look out for import options.

Majority of Bhutan’s plants are facing labour issues due to the increased number of Covid-19 cases, while a few plants are completely shut as their workers have got infected. In addition, intense checking at Mini Dry Port (MDP) and various state borders have also affected shipments. The availability of trucks remains an issue for most of the ferro silicon producers in Bhutan and India.

Outlook
Producers are of the view that Bhutan’s benchmark prices would soon pick up and match the Guwahati levels. Buyers are also trying to procure as much quantity as possible as the bullish sentiments may sustain in the market for this month too.

 
OM Holdings

Malaysia: OM holdings to suspend ferroalloys production at Sarawak plant

OM Holdings Ltd had to shut down its smelter complex in Sarawak, Malaysia on the night of 27 May’21 after a number of workers tested COVID positive, as per latest reports. The plant was operating at a rate of 12,000 t per month of ferrosilicon and 18,000 t/month of silicomanganese before the shutdown. The ferroalloys producer has withdrawn its guidance for the year and shipments of existing inventory are also likely to be disrupted. The loss in production is likely to affect supply in Aug-Sept’21.

 
Ferro silicon Prices

India: Ferro silicon prices rise further on supply-demand mismatch

Indian ferro silicon prices increased further amidst the supply crunch from Bhutan. Bhutan’s producers are still dispatching their old orders and not available for immediate deliveries.

Indian ferro silicon prices increased further from INR 129,000/tonne (t) to INR 132,000/t ex-plant. However, producers are even quoting higher prices for bulk orders.
Meanwhile, Bhutan’s producers are not offering any material in the market at present. They are waiting to quote a new round of ferro silicon offers for next month.

A trader from northern India told SteelMint, that imports are available at around $1,645/t CNF India, but shipments will not arrive before a month. However, due to the higher prices, buyers are hesitant to book any bulk orders and mostly procuring small volumes through immediate shipments.

Moreover, producers from Bhutan are facing severe labour shortage which is creating a huge backlog of orders. These producers are facing breaking and sizing issues due to a shortage of low and semi-skilled labour amidst lockdowns and increasing number of cases. However, Bhutan’s exporters are also missing out on taking advantage of the higher international prices and bullish market sentiments. The producers are facing problems in trading due to the increasing number of Covid cases in neighbouring India, from where (Kolkata Port), most of their trade takes place.

Outlook
Producers feel prices may go up further as the smelters are booked for the next month. Meanwhile, increasing silico manganese prices and higher demand from mild steel mills are boosting sentiments in the domestic ferro silicon market.

 
Bhutan Advisory

Bhutan issues advisory on third-country imports amid delayed shipments

Bhutan’s Ministry of Economic Affairs has issued an advisory on third-country imports on 25 May’21 amidst increasing delays in shipments at transit points. A letter from the ministry (in pic) states that the increased number of cases in neighbouring countries and stringent COVID protocols are delaying shipments, resulting in high demurrage charges. The ministry has requested third-country importers to defer their imports to support uninterrupted supply of essentials. Currently, ferro silicon producers in Bhutan are struggling to fulfil orders amid high backlog.