- Production shifts strengthen seller sentiment
- Higher input costs pressure producer margins
Indian silico manganese (60-14) prices strengthened w-o-w across major producing markets, reaching a four-month high, supported by tighter domestic availability and firmer seller sentiment.
Raipur prices rose by INR 1,200/t ($13/t) to INR 78,600/t ($821/t) exw, while Vizag prices increased by INR 900/t ($9/t) to INR 77,800/t ($812/t) exw. Durgapur and Raigarh also recorded gains of INR 1,300/t ($14/t) and INR 1,400/t ($15/t), reaching INR 78,100/t ($815/t) and INR 78,000/t ($812/t) exw, respectively.
Production curtailments tighten domestic availability
Several producers reduced silico manganese output as weak alloy economics made furnace operations less attractive. Lower returns from SiMn production, alongside comparatively better economics from alternative furnace operations, encouraged producers to curtail alloy output. Scheduled maintenance at some units further restricted fresh availability. The resulting reduction in spot material became increasingly visible during the week, strengthening sellers’ negotiating positions and providing a clear supply-side foundation for the recent price gains across major Indian SiMn markets.
Confirmed Deals
Higher input costs continue pressuring producer margins
Elevated met coke and other carbonaceous input costs have increased the cost of producing silico manganese, further weakening already-constrained furnace economics. With input costs remaining firm, producers have had limited room to absorb lower alloy prices. The combination of higher production costs and subdued operating margins has encouraged greater production discipline among smelters. This has reduced the willingness of sellers to offer material aggressively, supporting firmer price indications across regional markets.
Durgapur smelters shift capacity towards HC ferro manganese
Several smelters in Durgapur have increasingly shifted furnace capacity towards high-carbon ferro manganese production, reducing the availability of silico manganese from the region. This change in product mix has further tightened prompt SiMn supply and strengthened sellers’ pricing positions. With fewer producers actively supplying the alloy, buyers are facing comparatively limited spot availability. The shift has therefore provided additional support to prices, despite domestic demand remaining relatively cautious during the period.
Outlook
Silico manganese prices are expected to remain firm in the near term as reduced production, tighter spot availability and capacity shifts towards HC ferro manganese support seller confidence. However, sustained gains will depend on stronger domestic demand and continued supply discipline.
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