- Power tariff revision to add nearly INR 2,500-3,000/t to production costs
- Tight prompt supply supports domestic prices; MOIL July ore prices in focus
Domestic silico manganese prices edged higher as limited spot availability supported the market. Most producers remained occupied with fulfilling bulk orders booked through spot deals and auctions, restricting fresh material availability. Tight supply conditions lent support to prices. Meanwhile, key producers, whose order books are largely committed until August 2026, have started offering material higher, reflecting the firm market sentiment.
As per BigMint’s assessment, domestic silico manganese prices increased by INR 500/t ($5/t) w-o-w across key markets. Prices in Raipur rose to INR 77,000/t ($814/t) ex-works, while Vizag prices increased to INR 76,200/t ($801/t). Durgapur and Raigarh also witnessed gains, with prices reaching INR 76,400/t ($808/t) and INR 76,100/t ($805/t), respectively, supported by tight spot availability and firm market sentiment.
Confirmed deals (as per BigMint)
Market overview
Tight inventories, impending power tariff hike support prices: Limited spot supply in the domestic market has largely supported silico manganese prices. Key steel mills have already booked bulk quantities for regular quarterly requirements, while many deals were finalized ahead of the Raipur power tariff hike effective 1 July Raipur and surrounding regions, the impact on High Tension (HT) industrial consumers estimated at around 45 paise/unit (45 paise/kWh). With the new tariff, silico manganese production costs will increase by approximately INR 2,500-3,000/t, sources informed.
With key smelters largely out of the spot market, availability has tightened further and most producers are now quoting for July 2026 supplies, citing limited material for immediate delivery. A key Raipur-based smelter told BigMint that prices are likely to remain supported ahead of the monsoon in key consuming regions, after which the market may slow and turn rangebound. A sharp decline in prices appears unlikely.
Delayed deliveries and scarce spot stocks underpin higher offers: Smelter offers continued to strengthen amid tightening spot availability, with a few producers raising quotations to INR 78,500-79,000/t ex-works Raipur. Limited prompt material availability has extended delivery schedules, with some producers offering supplies for mid-July while others are quoting for August 2026 deliveries. The limited availability of immediate deliveries and thin trader inventories have shifted market dynamics in favor of sellers, enabling producers to maintain firmer offer levels. Market participants noted that constrained spot availability, coupled with healthy order books, has reduced sellers’ urgency to liquidate material, thereby supporting the recent upward trend in domestic silico manganese prices.
Outlook
Domestic silico manganese prices are expected to remain supported in the near term on tight spot availability and higher production costs. However, MOIL’s July ore prices and delivery volumes will be crucial in shaping the next price trend.
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