- Buyers delay booking, expecting prices to fall further
- Sellers reduce offers amid ample inventories
Indian ferro silicon (Si:70%) prices fell by INR 2,800/tonne (t) ($30/t) w-o-w to INR 91,000/t ($961/t) exw-Guwahati on 30 June 2026. In Bhutan as well, prices dropped by INR 2,600/t ($27/t) w-o-w to INR 91,200/t ($963/t) exw. Deals for around 1,600 t were concluded across both regions last week within the INR 90,000-92,000/t ($950-972/t) exw range.
Prices continued to decline last week, as subdued demand and competitive selling kept the market under pressure. Buyers remained cautious, expecting prices to soften further, while sellers reduced offers to stay competitive and keep plants running. Market activity also remained slow as participants awaited Bhutan’s July offers, which are expected to provide fresh direction to domestic prices.
Market updates (23-29 June)
Market sentiment remains weak during month-end: As June came to a close, inquiries remained limited as buyers largely restricted purchases to immediate requirements. After prices declined continuously throughout the month, most buyers expect further corrections in July and, consequently, have delayed bookings. Sources also reported that some producers and traders continued to hold ample inventories, prompting remaining sellers to reduce offers further to secure orders. Overall, abundant stocks and subdued demand weighed on market sentiment, leading to another w-o-w price correction.
Chinese market stable despite weak steel demand: Chinese ferro silicon (Si:75%) prices remained largely stable, easing marginally by RMB 100/t ($15/t) w-o-w to RMB 6,050/t ($891/t) exw-Inner Mongolia. Weak seasonal steel demand and the absence of major steel mill tenders continued to limit buying interest, resulting in modest inventory accumulation. However, stable production costs and adequate semi-coke supply prevented sellers from offering significant discounts, keeping prices largely supported.
Meanwhile, August 2026 ferro silicon futures on the Zhengzhou Commodity Exchange (ZCE) edged up by RMB 6/t ($1/t) to RMB 5,680/t ($836/t) on 29 June, indicating a broadly stable futures market.
Outlook
Indian ferro silicon prices are expected to remain under pressure in the coming week. The market will closely watch Bhutan’s July offers, which are likely to set the direction for domestic prices. Unless buying activity improves or inventories reduce, sellers may continue offering competitive prices to secure orders.
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