- Billet market weakness reinforces cautious procurement
- Several key producers continue to divert power to the grid
Domestic silico manganese prices edged down marginally in the week ending 13 October 2026, as subdued downstream demand offset support from limited spot availability. Persistent energy cost pressure and weak finished steel demand have prompted steelmakers to defer fresh procurement and prioritise inventory management amid market uncertainty.
On the supply side, smelters have curtailed regular production as higher offers face limited market acceptance, focusing instead on fulfilling existing commitments and export-grade orders. This supply-side restraint is limiting the downside in domestic prices, although a sustained recovery will depend on improved steel demand and greater buying acceptance of prevailing price levels.
Domestic silico manganese prices declined marginally by INR 200/t ($2/t) across Raipur, Vizag, Durgapur and Raigarh, reflecting subdued buying interest amid cautious procurement by steelmakers. Prices eased to INR 84,200/t ($871/t) ex-works Raipur, INR 83,700/t ($865/t) in Vizag, INR 83,800/t ($868/t) in Durgapur and INR 83,600/t ($866/t) in Raigarh.
Confirmed deals (as per BigMint)
Market overview
Falling billet prices weighs on domestic market: Downstream silico manganese demand remained subdued amid falling semi-finished steel prices and an uncertain market outlook. BigMint’s billet index declined by INR 1,200/t w-o-w to INR 44,500/t exw Raipur on 14 October, reflecting weakness in the steel market.
Steelmakers remained cautious, postponing fresh bookings amid sluggish finished steel offtake. Meanwhile, power disruptions constrained billet production and spot availability, but supply side tightness failed to arrest the price decline. The weakness in billet prices signals limited scope for a near-term recovery in silico manganese demand, while the alloy market’s price direction will depend on improved steel offtake.
Sellers struggle to secure higher prices despite reduced availability: Prices remain under pressure due to limited buying interest despite reduced spot availability. Sellers are quoting around INR 85,000/t exw Raipur, while acceptance is largely at around INR 84,000-84,500/t, with higher realisations restricted to urgent requirements. Ongoing holidays have further slowed market activity, keeping transaction volumes subdued. Several key producers continue to divert power to the grid as per contracts for October, limiting surplus material in the spot market. However, supply-side restraint has yet to translate into stronger price realisation, as cautious steelmakers and weak downstream demand continue to restrict fresh procurement. The widening gap between offers and executable prices indicates that sellers’ pricing ambitions remain ahead of market acceptance, limiting the scope for a sustained price recovery in the near term.
Outlook
Domestic silico manganese prices are expected to edge lower in the near term as market uncertainty and subdued downstream demand continue to limit buyers’ acceptance of prevailing offers. Despite reduced spot availability due to production curbs, sellers may face continued resistance to higher prices, keeping downward pressure on market realisations.
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