- Deals at lower levels exert mild downward pressure
- ZCE futures (Feb’26) inch up w-o-w
Indian ferro silicon (70%) prices inched down by INR 900/t ($10/t) on 22 December compared with the assessment on 15 December.
According to BigMint, prices stood at INR 96,700/t ($1,078/t) exw-Guwahati on 22 December. In Bhutan, prices declined by INR 1,700/t ($19/t) w-o-w to INR 96,800/t ($1,079/t) exw. Across both regions, around 2,690 t of transactions were concluded last week within the price range of INR 95,500-97,500/t ($1,063-1,085/t) exw.
Ferro silicon prices softened slightly across both regions, weighed down by lower-priced transactions amid cautious buying and weak demand.
Market updates (16-22 December)
Trading activity continues to influence market sentiment: Ferro silicon prices inched lower last week after transactions were concluded at lower levels of around INR 96,000-97,500/t ($1,069-1,085/t) ex-works. Overall market sentiment remained weak, as several major sellers were largely sold out and focused on supplying pre-booked orders.
While a few sellers continued to quote firm offers, buying interest remained subdued, with buyers adopting a cautious approach amid uncertain demand conditions.
Demand in the China market remained subdued: Ferro silicon (Si 75%) prices in China remained stable w-o-w at RMB 5,750/t ($817/t) ex-Inner Mongolia. The market was supported by expectations of supply tightening and elevated production costs, which limited further price declines. However, demand remained weak, with downstream steel mills purchasing mainly on an immediate, need-based basis.
Soft conditions in the magnesium market further reduced demand for certain grades, limiting spot trade activity. Although futures prices fluctuated, they had little impact on the spot market, and overall sentiment stayed cautious, keeping prices steady.
ZCE futures inch up w-o-w: Ferro silicon futures for February 2026 delivery on the Zhengzhou Commodity Exchange (ZCE) inched up by RMB 116/t ($16/t) w-o-w to RMB 5,512/t ($783/t) on 22 December compared to RMB 5,396/t ($767/t) on 15 December.
Outlook
Market activity is expected to remain muted as Indian mills continue to quote lower prices, and participants remain in a wait and watch mode till the release of the Bhutan price announcement in January 2026.
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