- Rupee slide amplifies ore costs, drives domestic price higher
- Bullish bias persists in domestic market, MOIL April prices in focus
Domestic silico manganese prices continued their upward trajectory this week, driven by a sharp surge in imported manganese ore prices and persistent supply tightness in the global market. The situation has been exacerbated by escalating geopolitical tensions in the MENA region, leading to shipment delays due to vessel allocation constraints. Additionally, rising ocean freight rates and limited insurance coverage for cargoes have further disrupted supply chains. These combined factors have significantly tightened raw material availability, pushing domestic silico manganese prices upto a two-year high, with levels last observed on 2 July 2024.
As per BigMint’s assessment on 25 March, domestic silico manganese (60-14 grade) prices witnessed an uptick across major markets compared to the previous assessment on 18 March 2026. In Raipur, prices rose by INR 1,000/t ($11/t) to INR 75,500/t ex-works ($803/t), reaching upto 1.8 years high. Similarly, Durgapur prices increased by INR 1,100/t ($12/t) to INR 74,600/t ($793/t), while Vizag saw a gain of INR 900/t to INR 74,500/t ex-works ($792/t). Meanwhile, Raigarh prices also moved up by INR 1,400/t ($15/t) to around INR 74,700/t ex-works ($794/t). The upward trend was primarily supported by higher raw material costs and continued acceptance of elevated price levels in the market.
Confirmed deals (as per BigMint)
Market Overview
Imported ore rally gathers pace; domestic SiMn prices set for sharp upside: Imported manganese ore prices inched up across grades w-o-w, supported by tight supply from key overseas miners. South African lumps (Mn 37%) registered a notable gain of $0.13/dmtu to $5.06/dmtu CNF Haldia/Vizag, reaching a more than 1.5 year high, with similar levels last observed on 20 July 2024. Meanwhile, Australian high-grade ore (Mn 46%) increased by $0.06/dmtu to hover around $5.92/dmtu, while Gabonese high-grade ore (Mn 44%) also moved up by $0.06/dmtu to $5.53/dmtu, remaining on the higher side. The overall firmness in imported ore prices has continued to lend support to domestic silico manganese prices.
A key smelter from Durgapur informed BigMint that imported ore prices have been rising steadily, with recent offers for Gabonese Mn 44% grade reaching around $6/dmtu. This is expected to have a significant impact on alloy prices, potentially pushing silico manganese prices higher by INR 3,000-4,000/t from current levels. Additionally, container shortages and currency depreciation are further inflating production costs, while steady export demand from Asian markets continues to support Indian material.
Rupee at record lows, ore costs spike: The uptrend in domestic silico manganese prices has been further reinforced by the sharp depreciation of the Indian rupee, hovering near record lows of INR 94against the US dollar, compared to about INR 82 a year ago. The sustained weakness in the rupee, alongside a firm US dollar amid global uncertainties, has significantly inflated the landed cost of imported manganese ore.
With India heavily reliant on imports from South Africa, Australia, and Gabon, currency depreciation has directly escalated procurement costs for smelters, amplifying even minor increases in dollar-denominated ore prices in rupee terms.
Market participants noted that smelters remained firm on offers, backed by rising input costs and squeezed margins. Meanwhile, traders, amid tight spot availability, aligned with higher price levels, leading to improved deal acceptance. The combined impact of currency pressure, firm ore prices, and supply tightness continues to support the upward momentum in domestic silico manganese prices.
Outlook
Domestic silico manganese prices are expected to remain firm to bullish in the near term, supported by persistently high imported manganese ore prices and a weak rupee hovering near record lows. Elevated raw material costs are likely to keep smelters’ offers firm, limiting downside in the market. Additionally, the upcoming MOIL ore prices for April deliveries will be a key trigger, providing clearer direction to the price curve in the near term.
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