- Tariff hike in Durgapur leads to price rise
- Steel mills stock up as prices surge in key markets
The domestic silico manganese market has experienced a week-on-week price uptick. This slight increase is attributed to rising production costs due to changes in power tariff in Durgapur, a key market.
On 8 April, 2025, domestic prices of 60-14 grade silico manganese increased by INR 730 per tonne ($9/t), according to BigMint’s assessment. Prices across key regions rose to INR 71,800-72,600/t ($830-838/t). This hike was driven by a rise in electricity tariffs in key regions, prompting major smelters to maintain robust offer prices.
In Raipur, offers mainly ranged between INR 71,800-72,300/t ($840-$848/t). Meanwhile, in Vizag, prices were between INR 72,000-72,800/t ($843-846/t) ex-works, with minimal trades taking place.
Confirmed deals (as per BigMint)
Market overview
Tariff hike in Durgapur drives up costs: The recent increase in power tariffs in Durgapur by INR 1.20 per unit has pushed up production costs. This hike has compelled smelters to maintain elevated prices despite weak market demand and falling overseas inquiries. As a result, smelters in other regions, including Raipur, Raigarh, and Vizag, have also maintained higher domestic prices, contributing to a rise in domestic offers last week.
Stable export prices despite market uncertainty: Indian silico manganese export prices have remained stable despite mixed market trends. While fluctuations in the market have created some uncertainty, the overall pricing for exports has held firm. BigMint’s assessment of export prices of the 65-16 grade on 7 April stood at $945/t FOB, up by $3/t w-o-w. Meanwhile, the 60-14 variant inched up by $2/t to $848/t FOB against last week. However, this has limited impact on domestic prices amid rising production costs.
Steel mills brace for price hikes: In response to the recent increase in silico manganese prices, steel mills have boosted their raw material inventories to safeguard against further hikes. This week, several transactions in the Durgapur market were heard at INR 73,000/t ex-warehouse, establishing a benchmark for other markets. Meanwhile, the Raipur market saw deals conclude at around INR 72,700 exw for approximately 800-900 t, prompting other buyers to conclude deals at elevated rates because of the perception that prices could reach INR 74,000/t exw in key regions. However, as the imported ore index opened lower, prices eased later on.
Outlook
Given the fact that ore prices are fluctuating, domestic silico manganese prices are expected to fall slightly due to a demand-supply mismatch in the steel market.
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