India: Ferro silicon prices continue to fall amid cautious market sentiment

• Competitive offers drive deal closures lower
  
  
• ZCE futures decline w-o-w
  
  

Indian ferro silicon (Si:70%) prices fell by INR 1,300/t ($14/t) w-o-w to INR 93,800/t (991/t) exw-Guwahati. Bhutans prices too declined by INR 1,200/t ($13/t) w-o-w to INR 93,800/t (991/t) exw. Prices came down as buying activity remained cautious and need-based prompting sellers to lower offers.

Around 5,500 t of deals were concluded last week in both the regions within the price bracket of INR 94,000-95,500/t ($991-1,007/t) exw.

Market summary (16-22 June)

Indian market slips on competitive offers: India's ferro silicon market remained under pressure last week as buyers continued to adopt a need-based procurement strategy, expecting prices to soften further in the coming week. Ample material availability in the domestic market strengthened buyers' negotiating position, leading to aggressive price discussions and slower deal closures. To remain competitive and maintain sales volumes, sellers/traders and producers lowered their offers, resulting in a decline in spot prices. Market participants reported that sufficient inventories and weak downstream demand further limited buying interest.

Meanwhile, export activity too remained subdued, with overseas demand showing little improvement. As a result, export offers were largely unchanged at around $1,090/t FOB Kolkata. Overall, abundant supply and cautious purchasing sentiment continued to weigh on the ferro silicon market.

Supply growth limits price upside in China: In China, ferro silicon (Si:75%) prices held steady w-o-w at RMB 6,150/t ($908/t) exw-Inner Mongolia, although sentiment stayed weak. Falling futures prices and pressure across the ferrous metals sector reduced buying interest and market speculation. Supply increased as producers in major regions resumed operations, while seasonal weakness in downstream demand limited price gains. However, producers were reluctant to cut prices further as many had secured orders for next month and current prices were already near break-even levels. Occasional restocking by steel mills also supported spot prices. Looking ahead, the market is expected to remain range-bound with a weak tone, though strong cost support may limit any significant price decline.

However, ferro silicon futures for August 2026 delivery on the Zhengzhou Commodity Exchange (ZCE) fell by RMB 78/t ($12/t) w-o-w to RMB 5,674/t ($838/t) on 22 June, compared with RMB 5,752/t ($849/t) on 15 June.

Outlook

Ferro silicon prices are expected to remain weak in the coming week amid ample supply, cautious buying, and subdued export demand. Need-based procurement and competitive offers may keep prices under pressure, although tight producer margins could limit any sharp decline.