- Buyers prefer cheaper imported ferro silicon
- China’s ZCE futures drop by $24/t w-o-w
Indian ferro silicon (70%) prices dropped by INR 1,500/t ($17/t) as compared to the previous assessment on 31 March. The decline was driven by the announcement of Bhutan offers for April 2025, whereby sellers from northeast India aligned their offers accordingly.
As per BigMint’s assessment on 7 March, ferro silicon prices in India stood at INR 96,600/t ($1,120/t) exw-Guwahati. In Bhutan, prices fell by INR 2,000/t ($23/t) w-o-w to INR 96,500/t ($1,119/t) exw. Approximately 2,200 t of trades were concluded in both the regions last week, within a price range of INR 95,000-96,500/t ($1,102-$1,119/t) exw.
Market trends (1 -7 April 2025)
Bhutan April offers dip: One of the key reasons for the fall in prices last week was the INR 3,500/t ($41/t) m-o-m drop in offers from Bhutan to INR 96,500/t ($1,119/t) exw. Sources said the drop in buying interest last month dragged down prices. Also, major steel mills had sufficient inventories with them and were not in a rush to procure additional stock.
Cheaper imports limit domestic inquiries: Indian buyers also preferred imported ferro silicon due to its more competitive pricing, which also had an impact on domestic offers. As per BigMint’s data, India imported 24,630 t in February, an increase from 19,506 t in January 2025.
Limited demand in southern India: Major sellers in southern India were offering in the range of INR 97,000-98,000/t ($1,125-1,136/t) exw. Referring to the current market scenario, a seller informed BigMint, “There is very limited demand in the spot market and bids are lower due to decrease in offers from Bhutan.”
Chinese market scenario
Ferro silicon (Si:75%) prices in China remained stable w-o-w at RMB 6,240/t ($854/t) exw-Inner Mongolia. The market remained stable as demand gradually recovered.
Although the recovery was slow, there was cautious optimism driven by expectations of an improvement in domestic macro-economic conditions. Inventory levels continued to rise, prompting market participants to remain cautious. Downstream inquiries increased, but overall market sentiment remained restrained. The ferro silicon market is expected to stay stable in the near term.
On the Zhengzhou Commodity Exchange (ZCE), prices dropped by RMB 176/t ($24/t) w-o-w to RMB 5,808/t ($795/t) on 7 March.
Outlook
As the Bhutanese prices have just been announced, in the coming few days, the market is expected to operate only at those levels. There might be some corrections in prices based on volumes and payment terms.
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