- Producers tighten supply amid shifting grade economics
- Stable ore prices strengthen producer pricing discipline
Domestic silico manganese (60/14) prices rose w-o-w across major markets, according to BigMint’s assessment. Raipur prices increased by INR 500/t ($5/t) to INR 75,000/t ($790/t) exw, while Vizag and Durgapur prices advanced by INR 200/t each to INR 74,400/t ($783/t) and INR 74,300/t ($782/t) exw, respectively. Raigarh prices also climbed by INR 400/t ($4/t) to INR 74,200/t ($781/t) exw.
The broad-based gains reflected producers’ efforts to safeguard margins amid changing product economics and limited willingness to negotiate lower spot levels.
Producers recalibrate product mix to preserve margins
Domestic silico manganese producers have been recalibrating their product mix, with some shifting production away from standard 60/14 toward relatively higher-realisation grades such as 60/16 and 60/15 and ferro manganese amid margin pressure. This has reduced their appetite to compete aggressively for 60/14 spot business, enabling sellers to maintain firmer offers. Consequently, prices advanced despite the absence of a significant improvement in overall buying activity.
Stable ore costs reinforce seller price discipline
MOIL’s decision to roll over manganese ore prices for September provided producers with greater visibility on their raw material costs after the reductions implemented in August. The unchanged pricing reduced expectations of another immediate decline in ore costs, allowing producers to protect alloy realisations. With margins already under pressure, sellers showed limited willingness to concede discounts, particularly on spot 60/14 offers.
Need-based procurement limits scope for sharper gains
Domestic buyers continued to procure primarily against immediate production requirements, keeping inventory commitments measured at prevailing price levels. However, restrained purchasing did not translate into aggressive discounting, as producers remained focused on protecting margins rather than chasing volumes. The resulting negotiations kept the market firm and supported moderate, broad-based price gains across major producing centres.
A key market participant told BigMint that buyers remained focused on immediate requirements, while producers continued to hold firm on offers to protect margins, limiting room for downward negotiations.
Outlook
BigMint expects silico manganese prices to remain firm throughout the coming week, as producers prioritise margin preservation, maintain a selective product mix, and face stable domestic ore costs. However, restrained buyer procurement could limit the scope for a sustained upward movement unless purchasing activity strengthens.
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