- Weak export demand leads to rising supply
- Buyers delay purchases amid falling prices
Indian ferro silicon (Si:70%) prices dropped by INR 1,000/tonne (t) ($10/t) w-o-w to INR 105,500/t ($1,105/t) exw-Guwahati, as per BigMint’s assessment on 11 May. In Bhutan, prices declined by INR 1,500/t ($16/t) w-o-w to INR 105,000/t ($1,099/t) exw. Bids were lower against Bhutan’s May offers, which, coupled with sufficient supply, ultimately pushed sellers to close deals at reduced prices.
Deals for around 1,400 t were concluded in both regions during the assessment window of 5-11 May 2026 within the price bracket of INR 104,000-106,000/t ($1,089-1,110/t) exw.
Market highlights (5-11 May 2026)
Buyer caution weighs on prices: Ferro silicon prices declined in both markets due to rising inventories, the commissioning of new production plants, and reduced demand from end-users. Additional pressure came from higher inflows of material into India; export demand for Bhutanese material in particular remained below expectations, which pushed suppliers in the neighbouring country to divert material into India.
Indian market participants also noted that overseas shipments were slower than expected, resulting in excess availability in the Indian market. Buyers also remained cautious and delayed fresh purchases amid expectations of further price corrections in the near term.
Owing to weak buying sentiment and abundant supply, Bhutan’s earlier announced offer prices of INR 106,000/t ($1,110/t) exw failed to sustain for a longer period. Consequently, prices softened further as sellers adjusted offers to attract buyers and clear inventories.
Chinese prices remain steady: Ferro silicon (Si:75%) prices in China remained unchanged w-o-w at RMB 6,050/t ($890/t) exw-Inner Mongolia, supported by stable semi-coke prices and the easing impact of earlier electricity tariff cuts. Supply remained largely steady, although temporary maintenance at some plants slightly reduced output. However, expectations of higher production in the coming weeks continued to weigh on market sentiment.
On the demand side, steel mills maintained need-based procurement, while weak finished steel demand and subdued futures trends limited transaction activity. Overall, the market remained weak but stable, with limited cost support offsetting cautious downstream demand. In the near term, ferro silicon prices are expected to remain largely stable, as potential supply increases may cap upside amid sluggish steel sector demand.
ZCE futures edge down w-o-w: Ferro silicon futures for July 2026 delivery on the Zhengzhou Commodity Exchange (ZCE) fell by RMB 136/t ($20/t) w-o-w to RMB 5,696/t ($838/t) on 11 May, compared with RMB 5,832/t ($858/t) on 4 May.
Outlook
BigMint expects ferro silicon prices to fall further amid ample supply and cautious buying activity. Rising inventories in India, coupled with additional inflows from Bhutan and slower-than-expected export movement, are likely to continue weighing on market sentiment.
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