India: Ferro Silicon Prices Unchanged amid Improving Demand

Indian Ferro Silicon prices remained unchanged W-o-W basis in the domestic market. However, demand is picking up in the domestic market, and the producers are now slightly relieved given the market condition for the past few weeks. Although, the demand for Ferro Silicon from overseas markets is still missing.

Producers from Bhutan are offering Ferro Silicon at INR 69,000/MT Ex- Bhutan. Ferro Silicon prices Ex-Guwahati is at around INR 70,000/MT. In the export market, prices remained unchanged for Ferro Silicon (75%) at USD 1120/MT FOB Kolkata. However, the inquiries remained missing despite lowered prices of Ferro Silicon.

Bhutan Producers Worried Over Power Tariff Revision
The three-year power tariff cycle is ending this month, which has brought the Pasakha Industrial estate to worry. The Druk Green Power Corporation (DGPC) and Bhutan Power Corporation (BPC) have proposed the tariff revision for the next three years to Bhutan Electricity Authority (BEA). DGPC has submitted a tariff revision proposal to increase the current Energy sale price to BPC. Industrialists feel that the revision with increased proposals would do greater harm, they claim that they are already selling below the production cost and such a revision may set up a final blow to the Ferro Silicon industries. Traders were also worried about the present market scenario and expressed that Bhutan is mostly dependent on India for its sales and that the supply is much more than the requirement. The prices may further dip because of this oversupply. Producers are continuously worried about the revisions Bhutan Electricity Authority (BEA) would approve.

On the future outlook, producers feel that it is highly unlikely that the prices may fall further than this and may continue at such levels for now. Most market participants believe that the prices may redeem only after the Stainless Steel market starts improving and prices for other Ferro Alloys also picks up.