- Supply tightness fails to lift prices
- Stainless production decline limits ferro silicon price rise
Indian ferro silicon (Si:70%) stayed unchanged as compared to the assessment on 9 March. Prices held steady as market largely operated at this month’s Bhutan’s price of INR 100,000/t ($1,081/t) exw.
As per BigMint’s assessment on 16 March, ferro silicon prices in India were INR 100,000/t ($1,081/t) exw-Guwahati. Bhutan’s prices too stayed at similar levels, unchanged w-o-w. Around 1,600 t of deals were concluded last week in both the regions within the price range of INR 98,000-100,500/t ($1,060-1,087/t) exw.
Market summary (10-16 March 2026)
Stable prices despite supply tightness: The ferro silicon market remained mostly stable as the majority of deals were concluded at this month’s announced price of around INR 100,000/t ($1,081/t) exw. These levels were widely accepted, keeping overall market sentiment steady. However, supply tightened slightly as some sellers in Bhutan and the North East sold out, prompting remaining suppliers to raise offers up to INR 105,000/t ($1,134/t) exw. Despite this increase, buyers showed resistance and higher prices did not gain much traction.
At the same time, rising geopolitical tensions between the United States and Iran have started affecting India’s stainless steel sector. Several mills have reduced production by 20-30% due to issues like limited industrial gas availability and higher logistics costs. The impact has been more visible in downstream operations such as rolling mills. As a result, demand for ferro silicon from the stainless steel segment remained weak, preventing any further upward movement in prices.
China’s market scenario: Ferro silicon (Si:75%) prices in China edged up by RMB 100/t ($14/t) w-o-w to RMB 6,000/t ($863/t) exw-Inner Mongolia. On the supply side, production recovery in key regions was slow, and output remained lower than last year, keeping operating rates low. On the demand side, steel mills were gradually increasing purchases, with steady m-o-m growth. At the same time, inventories declined and were lower compared to last year, supporting the market. Costs of semi-coke and electricity were stable, providing a strong base for prices, while spot trading remained steady.
In the short term, prices are expected to move within a narrow range. Stable costs and steady demand will support the market, while slow supply recovery might prevent any major price drop or sharp rise.
ZCE futures hold steady w-o-w: Ferro silicon futures for May 2026 delivery on the Zhengzhou Commodity Exchange (ZCE) stayed largely stable, rising slightly by RMB 4/t ($1/t) w-o-w to RMB 5,872/t ($844/t) on 16 March 2026, compared with RMB 5,868/t ($844/t) on 9 March 2026.
Outlook
In the coming week, ferro silicon prices are expected to stay at current levels as supply tightness is mitigated by lesser inquiries in the market.
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