India: Ferro silicon prices hold steady as market stays quiet

• Prices unchanged w-o-w in South India
• Drop in China’s domestic, ZCE futures prices

Indian ferro silicon (70%) prices stayed largely stable last week, inching down by INR 200/t ($2/t) in comparison to the assessment on 26 May. Prices were stable as market mostly was muted awaiting Bhutan’s offers for June.

Ferro silicon prices in India were INR 94,300/t ($1,104/t) exw-Guwahati, as per BigMint’s assessment on 2 June. In Bhutan, it edged down by INR 100/t ($1/t) w-o-w to INR 94,900/t ($1,111/t) exw. No deals were reported last week as majority of the sellers were sold out or were catering to previously booked orders.

Market summary (27 May – 2 June 2025)

Usual month end market silence: The ferro silicon market usually becomes inactive during month end and same was seen in the last week. This is because anticipation starts to build up for new month’s offers to be released from Bhutan. So it kept the prices largely stable without any major fluctuations.

Export offers too didn’t experienced any variations and was hovering at $1,150-1,180/t FOB Kolkata.

Steadiness in South India’s offers: South Indian sellers too kept their offers stable w-o-w at INR 95,000-97,000/t ($1,112-1,135/t) exw. Prices majorly fluctuated based on order quantity.

Decline in Chinese prices: Ferro silicon (Si:75%) prices in China dropped by RMB 300/t ($42/t) w-o-w to RMB 5,740/t ($797/t) exw-Inner Mongolia. The ferro silicon market saw a slow pace of recovery, though expectations persisted for a rebound in demand and support from domestic macroeconomic developments.

Inventories continued to rise, leading traders to exercise caution through measured shipments and timely profit-taking. Terminal demand improved gradually, with increased inquiries and slight price gains from the downstream sector. Overall market sentiment remained cautious, with steady operations expected.

On the Zhengzhou Commodity Exchange (ZCE), prices dropped by RMB 310/t ($43/t) w-o-w to RMB 5,196/t ($721/t) on 2 June for July deliveries.

Outlook

June offers from Bhutan will determine the price direction in the days ahead.