India: Ferro silicon prices drop to 2-month low on muted demand; market waits for Bhutan's Jun offers

• Adequate supplies keep market sentiment weak
  
  
• BPC maintenance raises Bhutan supply concerns
  
  

Indian ferro silicon (Si:70%) prices declined by INR 3,300/tonne (t) ($35/t) w-o-w to INR 102,200/t ($1,071/t) exw-Guwahati on 26 May 2026. Prices fell to their lowest level since March 2026 as demand remained subdued, with most bookings already concluded earlier this month. Buyers were also in wait-and-watch mode, awaiting Bhutan's June offers.

In Bhutan as well, prices fell by INR 2,600/t ($27/t) w-o-w to INR 102,000/t ($1,069/t) exw. Deals for around 2,800 t were heard last week in both regions within the price bracket of INR 100,000-104,000/t ($1,048-1,090/t) exw.

Market overview (19-25 May)

Weak demand, ample supply pressure prices: Indias ferro silicon market remained under pressure as demand stayed weak. Most consumers had already completed their bookings earlier this month, limiting fresh buying activity in the spot market. At the same time, adequate material availability kept supply conditions comfortable, prompting sellers to reduce offers in order to sustain operations and remain competitive.

Buyers largely adopted a cautious approach, expecting prices to decline further in the coming days. Trading activity also slowed towards the month-end, as many participants preferred to wait for a clearer market direction.

Additionally, market sentiment remained subdued with Bhutanese suppliers expected to announce their June offers next week, leading several buyers to postpone purchases in anticipation of potentially lower prices and better buying opportunities in the upcoming cycle.

RINL floats 4,320-t purchase tender: Rashtriya Ispat Nigam Ltd (RINL) has issued a purchase tender for 4,320 t of ferro silicon (Si:70% min, 25-100 mm) for its Visakhapatnam Steel Plant. The bid submission deadline is 1 June 2026.

Bhutanese supply concerns arise amid BPC maintenance: Bhutan Power Corporation (BPC) will carry out maintenance and replacement work on overhead line components and related fittings, primarily in the Pasakha region.

The work will be conducted along the 66kV multi-circuit feeder line between Malbase and PIE (Singye switching station), covering multiple tower locations in the region. As part of the activity, daily power shutdowns will be undertaken between 8:00 AM and 5:00 PM from 25 May to 4 June 2026.

Pasakha is a key ferro silicon production hub, and the planned outages could potentially disrupt alloy output during the maintenance period. It will need to be monitored whether the shutdowns will significantly affect ferro silicon supplies and prices in the coming days.

Chinese prices edge up: Ferro silicon (Si:75%) prices in China edged up by RMB 100/t ($15/t) w-o-w to RMB 6,150/t ($905/t) exw-Inner Mongolia. Prices increased mainly due to firm raw material costs and limited spot availability. Semi-coke prices stayed strong, supporting production costs. At the same time, maintenance shutdowns at major plants reduced market supply, keeping material availability tight.

Demand from steel mills remained stable, while recent tender price increases further supported the market. Buyers also resumed some pending purchases, helping improve overall sentiment. In addition, rumours regarding stricter energy consumption policies encouraged traders to hold back sales and maintain higher offers.

Ferro silicon futures for July 2026 delivery on the Zhengzhou Commodity Exchange (ZCE) too went up by RMB 288/t ($42/t) w-o-w to RMB 6,072/t ($894/t) on 25 May, compared with RMB 5,784/t ($851/t) on 18 May.

Outlook

BigMint expects ferro silicon prices to continue declining in the coming week amid subdued spot demand and ample supply. Bhutan's June offer announcement will further determine future price trends.