- Tight spot supply, higher production costs lift prices
- Rising freights, packaging charges support uptrend
Indian ferro silicon (Si:70%) prices increased by INR 3,000/t ($32/t) w-o-w to INR 103,000/t ($1,086/t) exw-Guwahati, as per BigMint’s assessment. Prices in Bhutan also moved up by INR 3,400/t ($36/t) w-o-w to INR 103,400/t ($1,090/t) exw. Although trading activity largely slowed in both markets, expectations of higher April price offers have begun to build, primarily linked to Bhutan’s upcoming price announcement.
“There are not many spot offers in the market currently. Bhutan-based players are indicating that monthly offers may rise to INR 105,000/t ($1,107/t) exw levels in Apr’26. However, it will be interesting to see if it finds acceptance,” said a source from an Indian steel mill.
Key factors supporting price rise
Higher power tariff in Bhutan: Bhutan’s Electricity Regulatory Authority approved a revised power tariff effective from 1 March 2026 to 30 June 2028. Energy-intensive industries, including ferro silicon producers, will now pay BTN 2.88/kWh (INR 2.88/kWh) compared with about BTN 2.60/kWh (INR 2.60/kWh) earlier. The increase has raised production costs by approximately INR 1,500-2,000/t ($16-21/t).
Limited spot availability: Following SAIL’s recent tender for around 15,000 t, sellers diverted significant volumes towards contractual supply instead of the spot market. Towards late March, some suppliers raised offers, and continued tight material availability may further support prices.
Decline in imports: India imported 17,329 t of ferro silicon in February 2026, down 18% from 21,076 t in January 2026. Lower import arrivals increased domestic inquiries, helping sustain demand sentiments.
Raw material, logistics pressures: Reduced availability of charcoal, a key raw material, has constrained production. Jumbo bag packing charges have also increased by around INR 500/t ($5/t). Additionally, ongoing geopolitical tensions have pushed freights higher, lifting export offers and strengthening expectations for higher domestic prices.
Outlook
Ferro silicon prices have recently shown improving momentum, and most market participants expect Bhutan to announce higher offers for April 2026. Consequently, prices are likely to maintain an upward trend next week.
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