- Export prices rise; domestic buyers remain cautious
- China market weak; soft demand caps price gains
Indian ferro silicon (Si:70%) prices edged up a little by INR 500/t ($5/t) as compared to the assessment on 6 April. Prices rose slightly as offerings were limited in the market with key sellers having already booked the material earlier.
Ferro silicon prices in India were INR 106,500/t ($1,143/t) exw-Guwahati. In Bhutan as well, it increased by INR 1,000/t ($11/t) w-o-w to INR 107,000/t ($1,148/t) exw. In total, around 1,000 t of deals were reported last week across both the regions.
Market highlights (7-13 April 2025)
Early bookings tighten supply: As per market sources, most ferro silicon sellers across both regions had already booked significant volumes at the beginning of the month and were primarily engaged in fulfilling those commitments. This led to a tightening of spot availability in the latter half of the month, pushing prices upward. One major Bhutanese plant was also under shutdown disrupting the supply flow. However, buyers remained cautious about the price increase and restricted their purchases to need-based bookings.
Market sentiment was also influenced by expectations of a potential revision in Bhutan’s prices around the 15th of this month, which could set the direction for future price trends. Meanwhile, export prices witnessed an uptick of $20/t w-o-w, reaching $1,235/t FOB Kolkata, reflecting improved global realizations.
China’s market scenario: Ferro silicon (Si:75%) prices in China remained steady w-o-w at RMB 6,100/t ($893/t) exw-Inner Mongolia. Despite this, the market remained weak, as completion of earlier steel procurement led to subdued demand and limited transactions. Easing semi-coke prices further reduced cost support, prompting slight price adjustments by sellers to facilitate deals. Despite production cuts in some regions, supply-side tightening was insufficient to offset weak demand, keeping sentiment cautious.
In the near term, prices are expected to remain weak with mild fluctuations, as soft demand and easing costs may keep pressure on prices, though supply-side adjustments could provide limited support.
ZCE futures decline w-o-w: Ferro silicon futures for June 2026 delivery on the Zhengzhou Commodity Exchange (ZCE) saw a decrease of RMB 150/t ($22/t) w-o-w to RMB 5,566/t ($815/t) on 14 April, compared with RMB 5,716/t ($837/t) on 7 April.
Outlook
Ferro silicon prices are showing signs of increase however acceptance from buyers will determine the extent of it. Bhutan’s mid-month price revision might throw further light on upcoming price trends.
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