- Subdued demand keeps market under pressure
- Power cuts in Meghalaya add to uncertainty
Indian ferro silicon (70%) prices inched down by INR 1,100/t ($13/t) in comparison with the last assessment on 14 July 2025. Despite firm offers from sellers, the market lacked momentum due to muted buyer interest
Ferro silicon prices were at INR 85,700/t ($992/t) exw-Guwahati, as per BigMint’s assessment on 21 July. In Bhutan, prices moved down by INR 700/t ($8/t) w-o-w to INR 86,300/t ($1,000/t) exw. Around 3,500 t of deals were reported to BigMint last week in both regions within the range of INR 84,000/t-86,500/t ($973-$1,001/t).
Market recap (15-21 July):
Muted market activity, weak demand: The market remained under pressure last week, with sluggish activity and subdued participation from buyers and sellers. Sellers were reluctant to adjust their offers, while buyers remained cautious amid weak demand. As a result, prices declined further, reflecting the ongoing slowdown in market sentiment.
A seller informed BigMint, “The market is likely to remain subdued until Diwali, as many pending deliveries from earlier bookings are still being cleared.”
Price trends in south India: Sellers in south India were largely offering in the range of INR 88,000-89,000/t ($1,019-1,042/t) exw.
Slight uptick in Chinese prices: Ferro silicon (Si:75%) prices in China rose by RMB 100/t ($14/t) w-o-w to RMB 5,740/t ($800/t) exw–Inner Mongolia, supported by improved market sentiment and stronger cost fundamentals. Spot prices also gained momentum from firm futures, driven by expectations around the upcoming anti-involution policy.
Supply tightened as some northwest producers reduced output due to lower electricity rates and peak production curbs. On the demand side, steel mill bidding improved slightly, though procurement remained largely demand-driven amid the off-season. Weak demand from the magnesium sector continued to weigh on overall price growth.
Outlook
In the near term, ferro silicon prices are expected to remain range-bound, with a potential price correction as demand gradually recovers.
A seller informed BigMint that power supply to all ferro silicon plants in Meghalaya has been disconnected following a High Court ruling related to pollution control norms. The duration of the shutdown remains uncertain, depending on future developments. This disruption may lead to a domestic supply shortage, potentially supporting ferro silicon prices in the near term.
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