India: Ferro silicon prices stable w-o-w; market awaits Bhutan’s Aug’26 offers

• • SAIL concludes 14,000 t ferro silicon purchase tender

• • Chinese prices remain unchanged w-o-w

Indian ferro silicon (Si:70%) prices stayed largely steady, going up marginally by INR 400/t ($4/t) w-o-w to INR 88,500/t ($924/t) exw-Guwahati. In Bhutan, it declined a little by INR 500/t ($5/t) w-o-w to INR 87,700/t ($916/t) exw.

Regular trades in the market helped keep prices stable over the last week. In all, around 5,100 t of deals were recorded by BigMint last week within the price bracket INR 85,000-89,000/t ($888-929/t) exw.

Market recap (21-27 July):

Steady supply-demand sustains prices: India’s ferro silicon market remained largely stable during the week, with balanced supply-demand dynamics keeping prices stable. Routine trading activity continued without any significant shift in market fundamentals, resulting in limited price fluctuations. Market participants reported steady availability of material, while consumption from end users remained largely in line with expectations.

Towards the end of the month, buying interest also slowed as several consumers refrained from fresh purchases, preferring to wait for Bhutanese August price announcements before committing to new bookings. This cautious approach limited spot market activity but did not exert downward pressure on prices.

Meanwhile, a key development came from the conclusion of SAILs tender on 23 July for around 14,000 t of ferro silicon across various grades and sizes (Si:70% min, 0-100 mm). The tender, covering supplies to seven plants, was finalized within a price range of INR 88,500-97,000/t ($924-1,013/t) FOR, excluding taxes.

High costs offset weak demand in China: Ferro silicon (Si:75%) prices in China were unchanged w-o-w at RMB 6,050/t ($894/t) exw-Inner Mongolia. Production costs remained high, and continued output cuts by some producers in major manufacturing regions helped prevent excess supply. On the demand side, activity was weak as steel mills completed most of their bulk purchases, while demand from the magnesium sector also softened. As a result, fresh buying remained limited and most deals were concluded at existing price levels. Both buyers and sellers adopted a cautious approach, leading to low trading activity. Future price direction will depend on upcoming steel mill tenders, power cost changes, production levels, and any improvement in downstream demand.

Meanwhile, September 2026 ferro silicon futures on the Zhengzhou Commodity Exchange (ZCE) rose by RMB 108/t ($16/t) w-o-w to RMB 5,890/t ($871/t) on 27 July.

Outlook:

India’s ferro silicon prices are expected to remain largely stable in the near term, supported by balanced supply-demand fundamentals and steady input costs. Buying activity may improve after Bhutanese producers announce August prices, providing clearer market direction.