- Rising smelter costs and weak steel buying nudge prices down
- Volatile outlook ahead as silico manganese market faces demand slowdown
Domestic silico manganese prices fell across major markets as slowing consumption from steel mills weighed on market sentiment. According to industry participants, mills have reduced procurement volumes amid moderated steel production and cautious buying ahead of year-end schedules.
As per BigMint’s assessment on 02 December 2025, prices of silico manganese (60-14 grade) in Raipur fell about 1% w-o-w to prices reached INR 69,600/tonne (t) ($771/t) exw.
In Durgapur, rates were assessed at INR 70,300/t ($780/t), down by INR 500/t ($6/t). Prices in Vizag also dipped by INR 500/t ($6/t) to INR 69,400/t ($770/t). Meanwhile, prices in Raigarh fell by INR 500/t ($6/t) to INR 69,300/t ($769/t) exw.
The premium 60-15 grade fell by about 1% w-o-w, trading near INR 72,200/t ($800/t), although a few deals were concluded at about INR 71,700/t exw Raipur. In Raipur, weekly trade volumes decreased to around 1,700 t, declined sharply from last week 3,100 t despite overall cautious market sentiment.
Confirmed deals (as per BigMint)
Market overview
Smelter pressure mounts as weak demand keeps domestic prices under strain: Smelters continue to face growing pressure from elevated production costs and limited furnace shutdowns, resulting in steady output despite weakening demand. This imbalance has contributed to mild downward pressure on prices in key producing regions.
Market sources indicate that although the price movement remains marginal for now, sentiment could weaken further if steel mills maintain their conservative procurement approach. Smelters, already grappling with rising input costs and thinning margins, may be forced to consider output adjustments should demand fail to pick up.
Traders expect short-term volatility to persist, with any recovery likely tied to improved steel market performance and fresh inquiries from domestic and export channels.
Export prices slip on weak overseas buying; EU safeguard quotas add pressure: India’s silico manganese export prices edged lower week-on-week as overseas demand remained muted, with bulk inquiries showing little momentum ahead of the holiday season. Market participants noted that pre-Christmas bookings were delayed, largely due to the EU’s safeguard quotas, which continued to restrict buying activity. As per BigMint’s latest assessment on 1 December 2025, export prices declined by an average of $4/t w-o-w. The 65-16 grade dipped by $2/t to $917/t FOB, compared with $919/t FOB on 25 November, while the 60-14 grade fell by $6/t to $817/t FOB, reflecting the cautious sentiment in the global market.
Outlook
Domestic silico manganese prices may witness slight volatility in the near term as the market awaits fresh orders. However, overall sentiment remains under pressure, with limited interest in bulk purchases continuing to weigh on pricing and trader confidence.
The rupee has weakened to an all-time low, with the USD conversion hovering around INR 90 per dollar. This depreciation has significantly increased the cost of production for smelters, particularly due to higher prices for imported manganese ore, on which Indian smelters rely for nearly 60% of their requirements. As a result, smelters may be compelled to take strategic decisions regarding production volumes in order to curb surplus supply in the domestic market and provide some support to prices in near time.
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