- Cautious buying limits price upside
- Chinese prices hold steady w-o-w
Indian ferro silicon (Si:70%) prices went up further by INR 2,000/t ($21/t) w-o-w to INR 93,000/t ($968/t) exw-Guwahati, as per BigMint’s assessment on 28 September. In Bhutan as well, prices increased by INR 2,200/t ($23/t) w-o-w to INR 93,700/t ($976/t) exw.
Limited supplies in the market, rising input costs and reports of Meghalaya units facing scrutiny over continued operations despite Meghalaya State Pollution Control Board (MSPCB) closure orders.
A total of around 4,200 t of deals were reported to BigMint last week in both the regions within the price bracket of INR 91,000-95,500/t ($947-994/t) exw.
Market updates (22-28 September)
Limited offers support price rise: Indian ferro silicon prices moved up last week, supported by limited availability in the spot market. Most sellers had limited material to offer, with several producers already booked or committed to supplying previously contracted orders.
Market participants were also awaiting Bhutan’s October 2026 offers, which is expected to be announced in the coming days, keeping fresh buying interest and market activity cautious. Amid constrained availability, sellers maintained elevated offers, resulting in upward price movement. Higher input costs, particularly rising semi-coke prices, further supported the firm pricing trend and kept producers’ offers at elevated levels.
Meanwhile, as per market sources, ferro silicon units in Byrnihat, Meghalaya, are facing increased regulatory scrutiny after the High Court flagged the continued operation of polluting units despite closure directions issued by the Meghalaya State Pollution Control Board (MSPCB). The court has sought a fresh status report from the pollution control board. The developments could add uncertainty to regional ferro silicon supply and market sentiment.
Chinese market steady: Ferro silicon (Si:75%) prices in China were unchanged w-o-w at RMB 6,350/t ($946/t) exw-Inner Mongolia. Semi-coke prices also stayed steady, while the earlier rise in coal prices had not yet fully affected ferro silicon production costs. This provided some support to spot prices.
On the demand side, weak profitability at steel mills led to lower production, with buyers mainly purchasing only for immediate requirements. As a result, market activity remained slow, with no major restocking. Ferro silicon producers also slightly reduced output, keeping overall supply balanced and inventories at normal levels.
Slight drop in ZCE futures: Ferro silicon futures on the Zhengzhou Commodity Exchange (ZCE) for November deliveries fell slightly by RMB 14/t ($2/t) w-o-w to RMB 6,004/t ($895/t) on 28 September.
Outlook
Indian ferro silicon prices are likely to remain firm in the coming week, supported by limited spot availability, higher input costs and potential supply uncertainty in Meghalaya. Bhutan’s upcoming October offers will be a key price direction indicator.
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