- Regional price wars shake up market dynamics
- Export prices slip w-o-w on limited inquiries
Domestic prices of 60-14 grade silico manganese declined by INR 470/tonne (t) exw on 25 March 2025, as per BigMint’s assessment. On w-o-w basis, these inched down by INR 50/t ($1/t) to INR 70,900-72,600/t ($827-848/t). The decline was driven by need-based buying and competitive pricing from other regions across India.
In Raipur, offers mainly hovered in the INR 72,300-73,000/t ($844-$852/t) band. Meanwhile, in Vizag, prices ranged between INR 72,600-73,500/t ($848-859/t) exw, with minimal trades taking place.
Meanwhile, the premium 60-15 grade remained slightly lowered w-o-w at around INR 74,000-75,000/t ($863-876/t) exw in Durgapur and Raipur.
Confirmed deal (as per BigMint)
Market review
Producers struggle amid pricing pressures: Competitive pricing from regions like Raigarh and Durgapur is putting pressure on domestic silico manganese prices. Smelters in Raigarh are offering prices at INR 71,000-71,500/t exw ($828-834/t), while those in Durgapur are presenting offers at around INR 70,500 – 71,500/t exw($823-834/t). This competitive landscape has been affecting key producing regions such as Raipur and Vizag, where smelters have been hesitant on offering discounts on their prices. However, limited buying activity from domestic steel mills has forced some smelters to reduce their prices in response to the increased competition. This combination of factors is creating a challenging market environment for silico manganese producers as they navigate pricing pressures and fluctuating demand.
A key producer in Durgapur informed BigMint that some plants have started offering silico manganese at discounted rates of INR 70,500-71,000/t exw. “This is due to the fiscal year-end pressures, as plants aim to manage monthly expenses and clear inventories, leading to panic selling in the market,” the source added.
Steel mills do need-based buying: Domestic steel mills’ need-based buying has exerted pressure on smelters and traders to lower prices of silico manganese. The slight recovery in steel billet prices has not significantly supported domestic silico manganese prices. As of 26 March, BigMint’s daily steel billet index closed at INR 41,300/t ($388/t) exw-Raipur, reflecting an uptick of INR 1,000/t ($85/t) w-o-w.
Export prices inch down w-o-w: Silico manganese export prices softened this week, with the 65-16 grade declining by $6/t to $941/t FOB and the 60-14 grade dropping $4/t to $850/t FOB, as of 25 March 2025. Weak export demand and lower imported manganese ore prices, like the Australian high-grade ore (down $0.30/dmtu to $5.53/dmtu), contributed to market caution. South African lumps and Gabonese ore also saw slight price reductions.
Outlook
In the short term, domestic silico manganese prices are likely to face slight downward pressures due to limited demand in both domestic and export markets. However, the outlook will depend heavily on MOIL’s pricing decisions and imported manganese ore price trends for April 2025, which are expected to play a crucial role in shaping domestic market dynamics.
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