India: Ferro silicon prices drop as market adapts to Bhutan’s Jun’25 offers

• Offers down INR 3,500/t ($41/t) m-o-m from Bhutan
• ZCE futures hold steady w-o-w

Indian ferro silicon (70%) prices experienced a decline of INR 2,300/t ($27/t) as compared to the previous assessment on 2 June. Prices dropped as Bhutanese sellers announced their June offers at INR 92,000/t ($1,075/t) exw and subsequently, sellers in North east India adopted to it.

As per BigMint’s assessment on 9 June, ferro silicon prices were INR 92,000/t ($1,075/t) exw in both Guwahati and Bhutan. Approximately 1,800 t of deals were concluded last week at same price levels.

Market recap (3-9 June 2025)

Fall in June’s offer price: A m-o-m drop of INR 3,500/t ($41/t) was seen in the offer prices from Bhutan. And as the norm goes, sellers in India particularly in North east started to offer at similar price levels. Rise in Indian imports lately from countries other than Bhutan did had an impact on the prices. Along with it, lower inquiries from buyers further pressured the market.

A seller in Meghalaya was quoted as saying to BigMint, “Here some plants are either supplying to SAIL tender or catering to previously booked orders. Despite this, market is subdued currently. However, we’re hopeful that prices might rise as supplies seem to be limited.”

Slight dip in Chinese prices: Ferro silicon (Si:75%) prices in China inched down by RMB 150/t ($21/t) w-o-w to RMB 5,590/t ($778/t) exw-Inner Mongolia. However, overall steel market continued to reflect a weak supply-demand trend.

Hot metal production declined, and steel mills were cautious in procuring raw materials due to margin pressures. Lackluster demand for ferro silicon continued to weigh on the futures market, keeping overall sentiment subdued.

However, recent signs of easing China-US trade tensions, including a phased tariff reduction agreement, have boosted market confidence. Expectations of a recovery in terminal steel demand and improving sentiment in the non-ferrous metals market offered short-term support to alloy futures prices.

On the Zhengzhou Commodity Exchange (ZCE), prices dropped marginally by RMB 22/t ($3/t) w-o-w to RMB 5,174/t ($721/t) on 9 June for July deliveries.

Outlook

With sources indicating discounts for bulk bookings, prices in the coming days might see a downward correction. However, a sharp fall is less likely.