- Firm met coke prices, other reductant costs push producers to keep offers firm
- Improving overseas inquiries, diversion of material towards exports support prices
Indian ferro silicon (Si:70%) prices increased by INR 400/t ($4/t) w-o-w to INR 88,700/t ($939/t) exw-Guwahati on 7 September 2026. However, in Bhutan, prices declined by INR 700/t ($7/t) w-o-w to INR 87,100/t ($922/t) exw. Bhutan announced offers for September at INR 87,000/t ($921/t) exw, which reduced prices, and in northeast India, higher input costs supported offers.
Deals for around 6,100 t were captured last week across both regions between INR 87,000-89,000/t ($921-942/t) exw.
Market summary (1-7 September)
Prices hold amid higher reductant costs: In northeast India, firm met coke and other reductant prices continued to keep production costs elevated, limiting downward pressure on ferro silicon offers.
Meanwhile, overseas inquiries improved during the week, encouraging producers to keep offers firm as they allocated more material towards exports. Export offers, however, remained largely unchanged at around $1,050/t FOB Kolkata.
Firm stainless steel sentiment also continued to support ferro silicon demand, with tight scrap availability, elevated alloy costs, and steady domestic demand supporting finished steel prices.
Meanwhile, Bhutan’s ferro silicon prices opened at INR 87,000/t ($921/t) exw in September, with routine trades at this level keeping the market largely steady.
Overall, market sentiment remained mixed, supported by steady Bhutanese prices, higher input costs in northeast India, and improved export inquiries, while competitive domestic offers continued to limit any significant upward movement.
Chinese prices edge up w-o-w: In China, ferro silicon prices increased by RMB 150 ($22) w-o-w to RMB 6,350/t ($946/t). Rising semi-coke, lump coal, and electricity costs continued to lift smelting costs, while relatively tight supply and improving steel mill tender activity ahead of the September peak season supported demand expectations. However, higher prices could encourage producers to resume operations, potentially bringing more supply into the market and moderating further gains.
ZCE futures rise w-o-w: Ferro silicon futures on the Zhengzhou Commodity Exchange (ZCE) for November deliveries rose by RMB 134/t ($20/t) w-o-w to RMB 6,392/t ($952/t) on 7 September.
Outlook
In the coming week, ferro silicon prices are expected to remain supported by higher input costs, stronger export inquiries, and steady stainless steel demand.
Leave a Reply