- Bhutan’s July offers drop INR 9,000/t ($94/t) m-o-m
- ZCE ferro silicon futures edge higher w-o-w
Indian ferro silicon (Si:70%) prices continued to decline further by INR 1,900/t ($20/t) w-o-w to INR 89,100/t ($935/t) exw-Guwahati, as per BigMint’s assessment on 6 July. Bhutan’s prices too fell by INR 2,200/t ($23/t) w-o-w to INR 89,000/t ($934/t) exw.
Around 1,100 t of deals were reported to BigMint last week in both the regions within the price bracket of INR 88,000-90,000/t ($924-945/t) exw.
Market summary (30 June – 6 July)
Ample supplies continues to weigh on prices: India’s ferro silicon market remained bearish during the week, as Bhutan’s July offers fell by INR 9,000/t ($94/t) exw m-o-m, reinforcing the prevailing weak sentiment. The decline was largely anticipated, as domestic prices had already been softening throughout the previous month amid cautious buying and expectations of lower Bhutanese offers.
The ongoing correction is primarily driven by an increase in Bhutan’s production capacity, which has risen from around 15,000-16,000 t/month to nearly 25,000-26,000 t/month, resulting in higher material availability. Export demand has also remained weak, limiting opportunities for Bhutanese suppliers. One key market participant recently told BigMint, “Inquiries are not there at the moment. Angola, Azerbaijan, Kazakhstan, and Brazil are supplying the export market,” highlighting the intense competition overseas.”
Furthermore, comfortable inventories with some traders and producers reduced the need for immediate procurement. With supply continuing to outpace demand in both domestic and export markets, ferro silicon prices remained under sustained pressure during the week.
Steadiness in Chinese market: Ferro silicon (Si:75%) prices in China held steady w-o-w at RMB 6,050/t ($890/t) exw-Inner Mongolia. Prices were supported by higher production costs following the implementation of differentiated electricity pricing in Shaanxi Province. However, expectations of a gradual production recovery in northwest China limited any upward price movement.
Demand remained weak due to the seasonal slowdown in the steel sector, while lower magnesium metal production further reduced consumption. As a result, market supply continued to build. Most traders adopted a cautious approach, and producers focused on fulfilling long-term contracts, with limited flexibility in spot prices. Overall, balanced cost support and weak demand kept trading activity subdued, with ferro silicon prices largely range-bound.
Meanwhile, September 2026 ferro silicon futures on the Zhengzhou Commodity Exchange (ZCE) edged up by RMB 102/t ($15/t) w-o-w to RMB 5,780/t ($850/t) on 6 July.
Outlook
India’s ferro silicon market is expected to remain under pressure in the coming week, as increased supplies from Bhutan, comfortable inventories with traders and producers, and cautious buying sentiment continue to weigh on prices. Weak export demand and intense competition from overseas suppliers are further limiting market support, while domestic consumers are largely procuring on a need-basis. With supply still exceeding demand, market sentiment is likely to stay subdued.
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