- Discounted bulk deals drag silico manganese prices to new lows
- Weak steel offtake and excess supply point to further decline in prices
Domestic silico manganese prices continue to decline amid low-priced bulk deals in both the spot market and producer auctions. Market sentiment remains weak due to subdued buying from steelmakers and expectations of further price corrections. Buyers are staying on the sidelines, anticipating a further drop in the coming weeks.
At the same time, surplus material for exports has been redirected to the domestic market, increasing supply and intensifying competition among sellers. With limited demand and excess availability, producers are being compelled to offer material at discounted rates to secure sales, keeping prices under sustained downward pressure.
As per BigMint’s assessment, domestic silico manganese prices declined across key markets w-o-w as on 12 May 2026, tracking persistent bearish sentiment. In Raipur, prices fell by INR 1,000/t to INR 76,000/t ex-works ($794/t), while in Vizag prices dropped by INR 1,100/t to INR 75,700/t ($791/t). Durgapur and Raigarh also saw notable corrections, with prices declining by INR 1,200/t each to INR 75,500/t ($889/t) and INR 75,000/t ($783/t), respectively, reflecting broad-based weakness driven by aggressive discounting and subdued buying interest. Prices are close to a two-month low.
Confirmed deals (as per BigMint)
Market overview
Seller margins fall as bulk deals set new lower price benchmark: Market sentiment weakened after spot bulk deals of around 500-800 t were concluded in Durgapur at INR 75,000-75,600/t ex-works, while auction transactions were reported in the INR 75,000-76,000/t ex-works range. These lower-priced deals have effectively reset domestic price benchmarks and intensified competitive pressure across major producing hubs. As a result, asking prices in Durgapur have softened to nearly INR 74,500/t ex-works, establishing a new reference point for other regional markets.
According to a leading Raipur-based producer, the estimated production cost for silico manganese 60-14 grade is around INR 75,000/t, implying that current transaction levels are at or below cost. This indicates mounting margin compression, forcing producers to prioritise liquidity and inventory reduction over profitability amid weak demand and surplus material redirected from the export market.
Weak end-user demand keeps billet market under pressure: BigMint’s billet index in Raipur declined by INR 1,400/t w-o-w to INR 40,250/t ex-works on 13 May, as weak downstream demand and cautious buying sentiment continued to pressure prices. Despite lower offers, transactions were limited to immediate requirements, with buyers staying on the sidelines amid sluggish finished steel movement, liquidity constraints, and volatile raw material costs. Market participants indicated that a meaningful recovery in billet prices will depend on stronger end-user demand.
Outlook
Domestic silico manganese prices are expected to remain under pressure as weak steel demand and surplus export material continue to outweigh production cuts. Prices may decline by another INR 500-1,500/t in the near term.
Leave a Reply