- Supply under pressure as smelters shift focus to higher grades
- Energy economics pressure domestic production
Domestic silico manganese prices increased in the week ended 29 September 2026, as a widening gap between production availability and spot-market requirements tightened domestic-grade supply. Key smelters are prioritising higher-grade silico manganese and export commitments, with several producers reportedly booked through November to mid-December. In addition, advance bulk bookings from domestic buyers have absorbed a significant portion of available material, leaving limited tonnage for spot sales.
Raipur prices rose by INR 3,200/t ($33/t) to INR 81,800/t ($853/t) exw, while Vizag prices increased by INR 3,400/t ($36/t) to INR 81,200/t ($847/t) exw. Durgapur and Raigarh also recorded gains of INR 3,700/t ($39/t) and INR 3,000/t ($31/t), reaching INR 81,800/t ($853/t) and INR 81,000/t ($845/t) exw, respectively.
Confirmed deals as per BigMint
Factor supporting prices
Bulk bookings, higher-grade focus tighten domestic spot supply: Domestic prices are gaining momentum as the availability of domestic-grade material in the spot market continues to tighten. The key factor is not a sudden increase in underlying consumption, but a structural reduction in spot availability, as producers increasingly prioritise bulk orders, pre-booked domestic requirements and long-term supply agreements over spot sales. This is allowing smelters to secure better visibility on future volumes while leaving fewer tonnes available for immediate buyers.
The supply-side pressure is further amplified by a shift in product mix toward higher-grade silico manganese (65-70%) and export-oriented material, where current realisations and forward bookings are more attractive. Several producers are reportedly committed well into November and mid-December, limiting their ability or willingness to allocate additional tonnage to domestic-grade spot requirements.
October could see another temporary supply contraction, with scheduled maintenance at some furnaces expected to reduce operating availability. At the same time, competitive returns from selling electricity to the grid are providing an alternative revenue stream for certain smelters, encouraging them to optimise furnace utilisation and, in some cases, reduce production of lower-margin domestic-grade silico manganese.
Power diversion to grid tightens domestic availability: Domestic-grade silico manganese production is facing energy-related constraints, as key smelters are increasingly diverting power toward grid sales amid attractive electricity realisations. This is reducing power availability for alloy production and limiting domestic-grade output. The resulting supply tightness could provide further upward pressure on domestic ferro alloy prices in the near term, a market participant informed BigMint.
Outlook
Domestic SiMn prices are expected to remain firm in the near term, with 60-14 potentially reaching up to INR 85,000/t exw in key regions. The upside is likely to be driven by restricted spot availability, as smelters prioritise bulk/long-term bookings, higher-grade silico manganese and exports, while October maintenance and power sales to the grid could further constrain domestic-grade output. Higher manganese ore offers from major miners South32 and Eramet in China are also expected to raise replacement-cost pressure in India. Meanwhile, MOIL’s October ore price revision will be crucial, with a higher hike likely to provide additional cost support to domestic silico manganese prices.
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