- Strategic procurements ensure stability in domestic prices
- Global market fluctuations instilling caution among buyers
Domestic prices of 60-14 grade silico manganese remained mostly stable w-o-w, declining slightly by INR 50/tonne (t) ($1/t) to INR 71,500-73,100/t ($827-845/t) exw on 18 March 2025, as per BigMint’s assessment. This stability is primarily attributed to routine trades and the steady flow of demand within the market. Despite global market fluctuations, India’s silico market has exhibited a sense of equilibrium, supported by need-based purchases and strategic procurements. Also, with fiscal year-end approaching, players are busy setting their books in order.
In Raipur, offers mainly hovered at INR 72,500-73,500/t ($838-$850/t); meanwhile, in Vizag, prices ranged between INR 73,000-74,500/t ($844-861/t) exw, with minimal trades taking place.
Meanwhile, the premium 60-15 grade remained unaltered w-o-w at around INR 75,000-76,000/t ($867-879/t) exw in Durgapur and Raipur.
Market overview
Strategic procurement plays key role: Strategic procurements have also supported the stability in the domestic market. Producers in the steel and foundry industries have adopted tactical purchasing strategies, acquiring silico manganese based on immediate production requirements rather than speculative buying as they already have enough material available with them.
This approach has prevented overstocking and ensured that inventory levels remain manageable. By controlling procurement volumes, manufacturers have avoided significant disruptions in the market, thus helping to maintain price stability.
Routine trades ensure price stability: Manufacturers and consumers are engaged in regular transactions, which ensures steady demand and prevents any drastic price fluctuations. These trades, based on established purchasing patterns, maintain a balance in the market, allowing prices to remain relatively stable. Routine trades have become a cornerstone of the silico market, acting as a buffer against sharp price changes.
Silico manganese export offers dip w-o-w: Indian silico manganese export prices saw a decline w-o-w due to subdued demand. Most buyers had fulfilled their material requirements in February, anticipating price hikes for March deliveries. As a result, procurement activity was limited, with buyers adopting a wait-and-watch approach, closely monitoring market trends.
BigMint’s assessment on 19 March of export prices of the 65-16 grade stood at $943/tonne (t) FOB, down by $10/t w-o-w. Meanwhile, the 60-14 variant also edged down to $843/t FOB.
Cautious market sentiment amid global fluctuations: While India’s silico manganese market has remained largely insulated from major price shifts, global market fluctuations have added a layer of caution among market participants. Price volatility in global raw materials, changes in supply and demand dynamics, and geopolitical factors are influencing buyer behaviour.
As a result, domestic producers have become more cautious in their pricing strategies, opting for more measured approaches to avoid unnecessary risk in uncertain times.
Outlook
In the near term, Indian silico manganese prices are expected to fluctuate as strategic procurements may have a negative impact. However, a potential recovery in demand, coupled with a positive shift in export inquiries, could alter the market dynamics and lead to price adjustments.
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