India: Ferro silicon prices edge up as market aligns with Bhutan's Mar'26 offers

• Power tariff hikes expected to lift production costs in Bhutan
  
  
• Tight supply, firm raw material costs lift Chinese prices slightly
  
  

Indian ferro silicon (Si: 70%) prices edged up by INR 1,000/t ($11/t) on 9 February as compared to the assessment on 2 February. Prices increased as the market largely operated at the earlier announced Bhutans prices of INR 100,000/t ($1,087/t) exw, which were up by INR 5,000/t ($54/t) m-o-m.

As per BigMints assessment on 9 February, ferro silicon prices in India were at INR 100,000/t ($1,087/t) exw-Guwahati. In Bhutan too, prices were at similar levels, and no fluctuation in prices was seen. Around 1,200 t were traded within the price range of INR 99,000-100,000/t ($1,076-1,087/t) exw.

Market summary (3-9 March 2026)

Prices remain steady in recent trades: Ferro silicon prices remained steady during the week after Bhutan announced its March offers at INR 100,000/t ($1,087/t) exw. Subsequently, sellers in both Indian and Bhutanese markets aligned their offers around the same level, leading to price stability across regions. With demand remaining at usual levels and no major supply disruptions, market activity stayed balanced, and transactions continued near the announced price range.

Additionally, some sellers, particularly in northeastern India, offered material at higher prices of up to INR 103,000/t ($1,120/t) exw, but these elevated offers gained limited acceptance in the market.

Power tariffs hiked in Bhutan: Bhutans Electricity Regulatory Authority approved a revised power tariff effective 1 March 2026 to 30 June 2028. Energy-intensive industries, including ferro silicon producers, will now pay BTN 2.88/kWh compared with about BTN 2.60/kWh earlier. The higher electricity cost is expected to slightly increase ferro silicon production costs in Bhutan going forward.

Silicon metal prices edge up: Imported silicon metal (Grade 553, Si: 98.5%) prices from China to India increased slightly by $35/t w-o-w to $1,375/t CFR Mundra on 9 March 2026.

Chinese prices rise slightly: Ferro silicon (Si:75%) prices in China inched up by RMB 150/t ($22/t) w-o-w to RMB 5,900/t ($854/t) exw-Inner Mongolia. Stable prices of key raw materials such as coal, along with steady electricity costs, continued to support production costs, preventing downward pressure on ferro silicon prices.

Meanwhile, downstream steel mills adopted a cautious procurement strategy, purchasing mainly based on immediate needs, which resulted in steady market transactions. Operating rates in major producing regions did not increase significantly, which kept overall supply relatively tight. Inventories also remained low, maintaining a balanced supply-demand situation in the market.

ZCE futures rise w-o-w: Ferro silicon futures for May 2026 delivery on the Zhengzhou Commodity Exchange (ZCE) rose slightly by RMB 104/t ($15/t) w-o-w to RMB 5,868/t ($848/t) on 9 March 2026, compared with RMB 5,764/t ($834/t) on 2 March 2026.

Outlook

In the coming week, prices are expected to stay largely steady at current levels asbuyers have shown resistance towards higher offers.