- Smelters resist steep cuts despite inventory buildup
- Elevated raw material costs limit price downside
Indian domestic silico manganese prices softened w-o-w on 26 May 2026 amid limited bulk trade activity, as participants remained in a wait-and-watch mode due to an uncertain market outlook. Prices declined to nearly a two-month low across key regions, pressured by weak steel demand. Steel mills continued to face challenges in liquidating finished steel inventories, while ongoing liquidity constraints further weighed on trade.
As per BigMint’s assessment, domestic silico manganese prices declined by INR 700/t ($7/t) w-o-w to INR 74,300/t exw ($776/t), while Vizag prices fell by INR 900/t ($10) to INR 73,700/t ($770/t). Durgapur witnessed the sharpest correction of INR 1,100/t ($12) to INR 73,800/t ($771/t), while Raigarh prices eased marginally by INR 200/t ($2/t) to INR 73,800/t ($771/t).
Confirmed deals (as per BigMint)
Market overview
Panic sentiment emerges amid rising inventories, weak liquidity: Rising inventories at smelters have led to panic sentiment. However, rising input costs due to the Indian rupee’s depreciation against the US dollar have limited any sharp decline in silico manganese prices, as smelters remain reluctant to offer significant discounts amid ongoing liquidity constraints.
A key smelter from Raipur informed BigMint that sellers holding lower-priced ore inventories procured earlier are currently able to provide some discounts. In contrast, producers consuming relatively higher-priced manganese ore purchased in February 2026 are unable to reduce offers aggressively. Additionally, despite some correction in miners’ June 2026 ore prices, the overall landed cost remains elevated due to adverse currency fluctuations.
This has prompted buyers to remain cautious and avoid booking bulk orders amid expectations of further market uncertainty.
Billet market remains largely stable amid sluggish buying interest: BigMint’s billet index remained broadly stable but edged up by INR 200/t w-o-w to INR 38,700/t exw-Raipur on 27 May, despite continued pressure from weak buying interest and lower bids. Market participants reported limited enquiries, largely centred on lower price expectations, prompting mills to trim offers to secure bookings.
Negative sentiment from neighbouring markets further weighed on trade activity. Traders noted that sluggish finished steel demand continues to restrict billet procurement, with buyers largely maintaining a need-based purchasing approach.
Outlook
Domestic silico manganese prices are expected to remain under pressure amid weak steel demand and cautious buying activity. However, further sharp declines may be limited due to rising imported manganese ore costs and the Indian rupee’s depreciation against the US dollar, which continue to keep production costs on the higher side for smelters.
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