- Operational uncertainties in Meghalaya pressure prices
- Imported silicon metal prices decline by $100/t w-o-w
Indian ferro silicon (70%) prices witnessed a drop of INR 1,500/tonne (t) ($17/t) w-o-w as against the previous assessment on 4 August. Prices declined as bulk deals were finalised at lower rates. Additionally, expectations are that ongoing market negotiations may also lead to deals closed at reduced values.
As per BigMint’s assessment on 11 August, ferro silicon prices in India were at INR 93,500/t ($1,067/t) exw-Guwahati. In Bhutan, prices declined by INR 500/t ($6/t) w-o-w to INR 94,500/t ($1,078/t) exw. Deals for around 5,500 t were concluded last week in both regions within the price bracket of INR 90,000-95,000/t ($1,027-1,084/t) exw.
Market summary (5-11 August 2025)
Bulk trades, regulatory uncertainty pull down prices: For August, Bhutan initially opened ferro silicon prices at INR 95,000/t ($1,084/t) exw. However, these levels could not be sustained for long. Market sentiment weakened, particularly in northeast India, where offers were reduced due to subdued demand and the need to remain competitive against other suppliers. Some bulk trades were also concluded at lower price points, which further pulled down overall market levels.
Adding to the market softness, uncertainty surrounded the operations of some units in Meghalaya. As per sources, show cause notices were issued to certain plants for alleged violations of pollution control norms. These factors created a cautious trading environment and added pressure on prices in the region.
Price trends in south India: Sellers in south India kept their offers largely stable w-o-w at INR 96,500-97,000/t ($1,101-1,107/t) exw. However, overall market activity was slow in this region.
Silicon metal prices drop w-o-w: Inventory build-up and weak demand added pressure on silicon metal prices as well. Imported silicon metal prices from China (grade 553, Si:98.5%) fell by $100/t w-o-w to $1,370/t CFR Mundra on 11 August.
Chinese prices remain steady: Ferro silicon (Si: 75%) prices remained unchanged w-o-w at RMB 5,760/t ($801/t) exw-Inner Mongolia. Recovery in steel mill profits helped sustain steady demand for ferro silicon inventory replenishment.
A temporary cut in electricity costs in some producing regions encouraged companies to resume or increase production. Output in Inner Mongolia and Ningxia rose slightly, but overall supply pressure stayed balanced due to earlier low operating rates.
ZCE futures edge up: Ferro silicon futures on China’s Zhengzhou Commodity Exchange (ZCE) for October 2025 delivery edged up by RMB 158/t ($22/t) w-o-w to RMB 5,820/t ($810/t) on 11 August, from RMB 5,662/t ($788/t) on 4 August.
Outlook
Prices in the coming days are expected to witness further correction, as slow demand might pull down offers from sellers.
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