India: Ferro silicon prices soften amid cautious trading, lower offers from Bhutan

• Bhutan’s offers decline INR 3,000/t ($31/t) m-o-m in Aug’26
• RINL floats 682-t purchase tender for ferro silicon

Indian ferro silicon (Si:70%) prices edged down by INR 800/t ($8/t) w-o-w to INR 87,700/t ($920/t) exw-Guwahati. In Bhutan as well, prices declined by INR 400/t ($4/t) w-o-w to INR 87,300/t ($916/t) exw. Prices declined following Bhutanese producers unofficially setting offers for August at INR 87,000/t ($912/t) exw.

Deals for 1,500 t were recorded by BigMint last week across both regions within the price bracket of INR 85,000-87,500/t ($892-918/t) exw.

Market summary (28 Jul-3 Aug)

Bhutan offer cut softens market sentiment: India’s ferro silicon market remained largely quiet last week as participants awaited Bhutan’s monthly offer announcements before making fresh deals. Although not officially announced, Bhutanese producers opened August offers at around INR 87,300/t ($916/t) exw, down INR 3,000/t ($31/t) m-o-m.

The price correction was mainly attributed to sufficient inventories in the market and weak export inquiries, which continued to weigh on sentiment. Amid ongoing price fluctuations, buyers largely restricted purchases to immediate requirements, preferring to wait for more clarity on market direction.

A Bhutanese producer told BigMint, “There is no fixed price. Every producer is selling at different prices. During July, prices varied between INR 84,000-90,000/t ($881-944/t) exw.” The absence of a uniform pricing benchmark reflected the cautious market environment, with suppliers adjusting offers based on individual sales requirements and prevailing demand conditions.

RINL invites bids for ferro silicon: On the demand front, RINL has issued a purchase tender for 682 t of ferro silicon (Si:70% min, 40-100 mm). Bid submissions are due by 11 August, while successful bidders are required to complete deliveries within 37 days from the date of the purchase order. The tender is expected to generate near-term procurement activity in the domestic ferro silicon market.

Chinese prices gain despite weak demand: Ferro silicon (Si:75%) prices in China edged up by RMB 100/t ($15/t) w-o-w to RMB 6,150/t ($911/t) exw-Inner Mongolia. Stable raw material and electricity costs continued to support production costs, while most producers resisted reducing offers. However, demand from the steel sector remained weak due to the seasonal slowdown, prompting mills to purchase only as needed. End-user consumption was yet to improve meaningfully, and ample inventories continued to cap any price gains. Trading activity was limited to small-volume deals as participants awaited the outcome of upcoming steel mill tenders for clearer market direction.

ZCE futures decline w-o-w: Ferro silicon futures on the Zhengzhou Commodity Exchange (ZCE) for October deliveries fell by RMB 262/t ($39/t) w-o-w to RMB 5,628/t ($833/t) on 3 August.

Outlook

India’s ferro silicon market is expected to remain stable to slightly weak in the coming week, with lower Bhutanese offers, ample inventories, and subdued export demand keeping sentiment cautious. Need-based buying is likely to continue, while RINL’s tender may provide limited support.