- Ample inventories, weak demand push sellers to offer competitive prices
- Chinese prices remain steady on higher power tariffs despite rising supply
Indian ferro silicon (Si:70%) prices declined further by INR 1,100/tonne (t) ($11/t) w-o-w to INR 88,000/t ($915/t) exw-Guwahati on 14 July 2026, driven by cautious buying and lower-priced bulk deals. In Bhutan, prices edged down by INR 300/t ($3/t) w-o-w to INR 88,700/t ($923/t) exw.
Deals for around 2,000 t were concluded last week across both the regions within the price bracket of INR 85,500-89,000/t ($889-926/t) exw.
Market highlights (7-13 July)
Competitive selling weighs on prices: Indian ferro silicon prices remained under pressure amid weak demand and intensified competition among sellers. Of the nearly 2,000 t traded, around 1,100 t were transacted below INR 89,000/t ($926/t) exw, with a bulk deal finalised at INR 87,000/t ($905/t) exw. Adequate inventories held by some producers and traders increased selling pressure, prompting aggressive offers to secure orders.
On the demand side, domestic consumption remained subdued as the onset of the monsoon disrupted infrastructure and construction activities across various regions, reducing steel production and alloy consumption. Additionally, inventories continued to accumulate at both steel mills and distributor warehouses, limiting fresh procurement. Consequently, weak buying interest, ample material availability, and competitive pricing kept the ferro silicon market under sustained downward pressure during the assessment period.
Stable input costs support Chinese prices: Ferro silicon (Si:75%) prices in China held steady w-o-w at RMB 6,050/t ($892/t) exw-Inner Mongolia. Increased electricity tariffs in Ningxia supported production costs, prompting producers to resist major price cuts. However, supply continued to grow as more plants resumed operations, leading to higher inventories and limiting any price gains.
Demand remained weak due to the seasonal slowdown in the steel sector, with steel mills carrying out blast furnace maintenance and reducing ferro silicon purchases. Magnesium producers also reduced output, while traders bought only limited quantities to meet immediate requirements. Looking ahead, prices are expected to remain largely stable, supported by production costs but capped by ample supply, weak steel demand, and elevated inventories.
Meanwhile, September 2026 ferro silicon futures on the Zhengzhou Commodity Exchange (ZCE) edged down by RMB 36/t ($5/t) w-o-w to RMB 5,746/t ($847/t) on 13 July.
Outlook
Indian ferro silicon prices are expected to remain under pressure in the coming week as weak domestic demand, ample inventories, and competitive selling continue to weigh on the market. Monsoon-related disruptions are likely to keep procurement subdued, while buyers are expected to purchase only for immediate requirements.
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