- China-India freights nearly double since Jun’26
- Chinese shipments to India rise 13% in 7MCY’26
China-origin silicon metal prices to India started moving higher towards the end of August 2026, as a sharp rise in China-India ocean freights added pressure on import offers.
Prices averaged around $1,435/t in August 2026, compared with $1,380/t in August 2025, marking a 4% y-o-y increase. While the annual increase remains moderate, prices have shown firmer movement towards late August, coinciding with a steep rise in freight rates from China to India.
Industry indications showed 40′ HC freight rates from major Chinese ports to Nhava Sheva increasing from around $3,350 in early August to $3,950 by 15 August, with rates estimated at $4,500-5,000 by 21 August amid tight vessel space, limited container availability and strong booking demand.
The increase in freight costs is adding pressure on import economics for Indian buyers sourcing silicon metal from China, even as the underlying material price remains relatively stable.
Japan’s demand drives Chinese exports, Indian buying remains firm
China’s silicon metal exports stood at 435,979 t in 7MCY’26, up 5% y-o-y from 414,711 t in 7MCY’25. Japan remained the largest destination at 82,869 t, up 5% y-o-y, while India ranked second with shipments rising 13% y-o-y to 78,357 t from 69,093 t.
The increase in shipments to India was supported by firm downstream demand, particularly for secondary aluminium alloys such as ADC12, amid healthy automotive demand. ADC12 is widely used in automotive die-casting applications, supporting consumption of silicon metal as a key alloying input.
South Korea followed with 45,589 t, up 11% y-o-y, while Thailand recorded the strongest growth among the major destinations, with Chinese silicon metal exports rising 71% y-o-y to 31,791 t. Shipments to the UAE and Malaysia also increased, while exports to the Netherlands remained broadly stable.
The continued rise in Chinese shipments to India highlights sustained demand from the Indian market, even as higher freights begin to put pressure on import economics.
Freight emerges as a key factor
The sharp increase in China-India freight rates has emerged as an important factor for the Indian silicon metal market. With vessel space and container availability remaining tight, elevated freight could continue to influence import offers in the near term.
For Indian buyers, the extent of the impact will depend on how long freight rates remain elevated and whether Chinese suppliers are able to offset part of the additional logistics burden through lower material offers. If freight remains high, sellers are likely to seek to pass at least part of the increase on to buyers.
Outlook
Chinese silicon metal prices to India are expected to remain firm in the near term, with freight likely to remain a key factor influencing import offers. Continued growth in Chinese shipments to India indicates that downstream demand remains supportive, particularly from the secondary aluminium alloy segment.
However, sustained high freight rates could eventually weigh on buying interest if the additional logistics burden is fully passed through to Indian consumers. Market participants will therefore closely track China-origin silicon metal prices, China-India freight rates and Indian demand, particularly from the ADC12 and automotive-linked segments, to assess whether the late-August firmness develops into a more sustained upward trend.
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