India: Ferro silicon market steady on balanced fundamentals

• Firm offers restrict major price declines
  
  
• Stable costs support Chinese prices
  
  

Indian ferro silicon (Si:70%) prices were stable w-o-w at INR 105,500/t ($1,096/t) exw-Guwahati, as per BigMints assessment in the week ended 18 May, largely due to limited trades and muted market sentiments.

Prices were also largely unchanged in Bhutan, inching down slightly by INR 400/t ($4/t) w-o-w to INR 104,600/t ($1,086/t) exw. Around 1,000 t of deals were reported last week in Bhutan within the price range of INR 104,000-105,000/t ($1,080-1,090/t) exw.

Market summary (12-18 May)

Limited trades slow market: Indian ferro silicon prices softened from the earlier announced Bhutan offers of INR 106,000/t ($1,101/t) exw for May, as suppliers largely extended discounts for bulk orders to secure business. Trading activity, however, remained limited during the week, mainly because major buyers had already completed their bookings and showed little urgency for fresh procurement. Despite subdued spot market participation, sellers continued to maintain firm offers, resulting in overall minimal movement in prices.

Meanwhile, a key Bhutanese seller told BigMint that market movement remained restricted due to a shortage of trucks, a situation further aggravated by the recent petrol and diesel price hike. If these logistical challenges continue, higher transportation costs could emerge as a key factor influencing ferro silicon prices ahead.

Steadiness in Chinese prices: Ferro silicon (Si:75%) prices in China remained unchanged w-o-w at RMB 6,050/t ($890/t) exw-Inner Mongolia, supported by stable semi-coke and electricity costs, along with relatively low operating rates and manageable inventory levels across major producing regions. Supply remained broadly steady, as producers continued to maintain firm offers amid stable production economics.

However, downstream steel demand stayed weak, with steel mills largely maintaining need-based procurement and showing limited interest in large-scale restocking. Weak finished steel demand and subdued futures market trends continued to weigh on overall trading sentiment, while cautious participation from traders kept spot transactions muted. Overall, the market remained balanced between stable cost support and sluggish demand fundamentals.

ZCE futures edge up w-o-w: Ferro silicon futures for July 2026 delivery on the Zhengzhou Commodity Exchange (ZCE) up by RMB 88/t ($13/t) w-o-w to RMB 5,784/t ($850/t) on 18 May, compared with RMB 5,690/t ($837/t) on 11 May.

Outlook

BigMint expects ferro silicon prices to remain at current levels in the coming week. Trading activity is likely to stay muted as most bookings for the month have already been concluded, following the monthly market pattern of bookings being completed at the beginning of the month. However, firm offers and possible logistics constraints from Bhutan are expected to support prices and limit any major downside.