- Steel sector slump leads to cautious procurement
- Import inquiries drop amid waning global demand
India’s domestic silico manganese prices touched a three-month low this week, with the 60-14 grade registering a total drop of INR 2,600/t ($31/t) since around mid-February 2025.
According to BigMint’s assessment, prices of the 60-14 grade declined by INR 700/t ($8/t) w-o-w to INR 69,600-70,300/t ($823-831/t), driven by weak demand, limited export activity, and adequate supply in the market. Buyers largely showed limited interest amid an uncertain steel sector outlook.
In Raipur, offers ranged within INR 69,000-71,500/t ($816-$845/t). Meanwhile, in Vizag, offers were at INR 70,000-71,500/t ($828-845/t) exw. Suppliers, facing sluggish inquiries, adjusted offers slightly downward to stay competitive, which pressured prices in a slow-moving market environment.
Deal concluded (as per BigMint)
Factors exerting pressure on prices
Steel sector slowdown limits buying: Domestic demand for silico manganese softened, as steel mills maintained a cautious procurement strategy. This restraint stemmed from a persistent weakness in the steel sector, marked by falling billet prices and sluggish end-user activity. With downstream demand limited, mills held sufficient steel inventories and restricted their fresh purchases for silico manganese.
Notably, BigMint’s steel billet index stood at INR 40,100/t exw-Raipur on 7 May, down by INR 200/t w-o-w.
Additionally, in addition to tepid buying interest, there was oversupply in the market, which compounded the pressure on silico manganese prices across key regions.
Export opportunities decline: In recent times, the export market has also been challenging for Indian silico manganese producers. Weak global demand, particularly from major importing countries, has led to limited import inquiries. This reduction in export opportunities further contributed to the downward pressure on domestic prices, as producers sought to maintain liquidity and competitiveness in the market.
BigMint’s assessment on 6 May 2025 showed export prices of the 65-16 grade at $931/t FOB, unchanged w-o-w. The 60-14 variant edged down by $2/t w-o-w to $839/t FOB.
Raw material prices fall: Prices of imported manganese ore, a key raw material, declined w-o-w, which reduced cost support for silico manganese tags. Mn44% from Gabon stood at $4.6/dry metric tonne unit (dmtu), down by $0.09/dmtu w-o-w. Mn37% from South Africa was assessed at $3.92/dmtu, down by $0.02/dmtu w-o-w, and Mn46% from Australia was at $4.92/dmtu CIF India, down by $0.1/dmtu.
Outlook
Silico manganese prices may remain under pressure amid weak steel demand, limited exports, and softening raw material costs, with no immediate signs of a strong recovery in domestic or global markets.
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