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[Ferro-Alloys.com] Reduced ferro-silicon production from alloy plants in India's Meghalaya state caused by power supply problems could support the Indian ferro-silicon market, despite limited demand from stainless steel mills.
Power generators in Meghalaya cut supply in response to unpaid dues.
At midnight on 20 March, state-owned North Eastern Electric Power began regulating supply to Meghalaya Power Distribution (MePDCL) for unpaid dues of Rs5.04bn ($69.7mn), forcing MePDCL to cut power supplies.
A seven-hour power cut across different shifts hit ferro-silicon output, reducing capacity by 25-30pc and in some instances as much as 50pc, ferro-alloy producers said.
Meghalaya state says repayments have been made and that regular power supplies should be resumed within 48 hours of the initial curbs, but one producer said it is unclear when regular supplies will resume.
The drop in production tightened spot supply of ferro-silicon in India, with prices expected to rise in the short term if the curtailments persist.
Alloy prices for 75pc grade were assessed at Rs98,000-100,000/t ex-works on 18 March amid subdued demand from stainless steel mills. This month's prices are over 9pc down on January's average of Rs107,375/t ex works India.
Demand from the stainless steel sector and foundries is expected to pick up by April as mills return to the spot market to restock.
Source: steelmint
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