India: Ferro silicon prices slide to 4-month low amid widening bid-offer gaps

• Higher output from Bhutan, weak exports drag down prices
  
  
• Chinese prices remain stable amid need-based purchases
  
  

Indian ferro silicon (Si:70%) prices declined further by INR 2,700/t ($29/t) w-o-w to a four-month low of INR 95,100/tonne (t) ($1,005/t) exw-Guwahati on 16 June 2026. Prices fell amid bid-offer disparities, which forced sellers to reduce offers.

Bhutan's prices also fell by INR 2,700/t ($29/t) w-o-w to INR 95,000/t ($1,004/t) exw. Deals for around 4,300 t were recorded during the assessment window in both regions within the price bracket of INR 92,000-98,000/t ($972-1,035/t) exw.

Market highlights (9-15 June)

Oversupply, weak exports weigh on prices: India's ferro silicon market remained under pressure last week as ample material availability weighed on prices, while demand remained at average levels. Increased production capacity in Bhutan ensured sufficient supply, while routine buying activity allowed consumers to negotiate more aggressively, leading to the emergence of bid-offer disparities.

To remain competitive, sellers repeatedly revised their offers downward, resulting in an overall decline in domestic prices. Export demand also stayed weak, with prices falling 4% w-o-w to around $1,090/t FOB Kolkata, prompting more export-grade material to be diverted to the domestic market and further increasing supply.

Reflecting the challenging market conditions, one supplier told BigMint, Were offering material at INR 95,000/t ($1,004/t) exw, but buyers are countering at INR 91,000-92,000/t ($961-972/t) exw. Another market participant added, We are going with the flow, and there is no designated price. Prices are changing every few days, and supply seems to exceed demand, which is why prices are dropping.

Chinese market remains stable: Ferro silicon (Si:75%) prices in China held steady w-o-w at RMB 6,150/t ($910/t) exw-Inner Mongolia. Lower semi-coke prices weakened production cost support, while steel mills continued buying only as needed and avoided high-priced purchases. At the same time, production resumed in key regions, increasing supply and causing inventories to rise slightly. Trading activity remained slow due to cautious market sentiment. In the near term, prices are expected to move within a narrow range, as weak cost support, a seasonal slowdown in steel demand, stable consumption, and improving supply are likely to keep the market under pressure.

Ferro silicon futures for August 2026 delivery on the Zhengzhou Commodity Exchange (ZCE) fell slightly by RMB 84/t ($12/t) w-o-w to RMB 5,752/t ($851/t) on 15 June, compared with RMB 5,836/t ($863/t) on 8 June.

Outlook

Ferro silicon prices are likely to remain under pressure in the coming week as supply continues to exceed demand. Weak export interest, ample availability from Bhutan, and cautious buying by consumers may keep negotiations aggressive, limiting any immediate price recovery.