- Prices decline as oversupply and weak mill demand reshape the market
- Billet market recovery unlikely to offset weak silico manganese fundamentals
Domestic silico manganese prices remained under pressure in the week ending 21 July 2026, weighed down by an uncertain market outlook and subdued procurement from both domestic and overseas steel mills. Trading activity remained limited as buyers continued to adopt a need-based purchasing strategy, while ample spot availability widened the demand-supply imbalance. The persistent oversupply, coupled with weak consumption, continued to exert downward pressure on prices despite elevated production costs. Prices are trading at a two-month low as per data maintained with BigMint.
According to BigMint’s assessment, domestic silico manganese prices fell by INR 400 /t ($4/t) w-o-w across key Indian markets,as producers trimmed offers to improve sales amid weak downstream demand and sufficient spot availability. Nevertheless, firm raw material and power costs constrained sharper price declines despite the subdued market sentiment. Raipur witnessed the sharpest correction, with prices falling by INR 400/t to INR 74,400/t ($770/t) ex-works. Prices in Vizag eased by INR 400/t to INR 74,300/t ($769/t), while Durgapur and Raigarh recorded declines of INR 500/t and INR 400/t to INR 74,300/t ($769/t) and INR 73,800/t ($764/t), respectively.
Confirmed deals (as per BigMint)
Market overview
Need-based procurement and surplus availability pressure domestic prices: Surplus material availability continued to weigh on domestic silico manganese prices, while steel mills curtailed procurement amid uncertain market sentiment and persistent fluctuations in finished steel prices. With trading activity remaining subdued, buyers largely restricted purchases to immediate requirements. Market pressure intensified after a few low-priced deals were concluded in Raipur at around INR 74,000/t ex-works, nearly INR 1,000/t below prevailing offers, setting a weaker price benchmark that influenced other key domestic markets. According to a Raipur-based producer, the market is being driven by aggressive low-priced transactions and abundant spot availability, forcing sellers to cut offers below production costs to secure orders, thereby intensifying downward pressure on prices.
Billet price rebound fails to lift silico manganese procurement amid cautious buying: BigMint’s billet index increased by INR 250/t w-o-w to INR 37,800/t ex-works Raipur on 17 July 2026, reflecting improved buying interest in the semi-finished steel segment. While the recovery in billet prices indicates a gradual improvement in steel market activity, its impact on silico manganese demand is expected to remain limited, as steel mills continue to follow a need-based procurement strategy amid ample alloy availability and cautious market sentiment.
Outlook
Domestic silico manganese prices are expected to remain range-bound to weak, with oversupply and sluggish procurement continuing to cap gains, despite improving steel market indicators. Production cost pressures are likely to cushion further price declines.
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