- Smelters resist discounts as rising costs outweigh MOIL’s ore price reduction
- Weak steel demand may limit upside, but domestic prices remain supported
Domestic silico manganese prices remained largely stable in the week ended 30 June 2026, supported by regular trade activity and firm producer offers. Most key smelters refrained from lowering prices ahead of the 45 paise/unit power tariff hike effective 1 July 2026, citing higher production costs. Although acceptance of higher offers was limited to urgent requirements, routine transactions continued to be concluded at mutually acceptable mid-range price levels between buyers and sellers.
As per BigMint’s assessment, domestic silico manganese prices remained stable with slight uptick by INR 100/t ($1/t) w-o-w across key markets, as producers maintained firm offers amid tightening spot availability and rising production costs following the power tariff hike. Raipur prices increased to INR 77,200/t ($811/t) ex-works, while Vizag remained stable at INR 76,200/t ($800/t). Durgapur and Raigarh also recorded marginal gains to INR 76,500/t ($804/t) and INR 76,200/t ($805/t), respectively.
Confirmed deals (as per BigMint)
Market Overview
Cost pressures limit downside in domestic despite lower MOIL ore prices: ore prices: Smelters maintained firm offers during the week, leaving little room for discounts as production costs remained elevated. The 45 paise/unit power tariff hike in Chhattisgarh, coupled with the continued consumption of high-cost imported manganese ore procured during the April price rally, has kept manufacturing costs on the higher side, prompting producers to resist any downward price revisions.
A Raipur-based smelter informed BigMint that the domestic market has largely stabilized, with no significant price correction expected despite MOIL’s 5% reduction in manganese ore prices for July deliveries. The producer also highlighted rising concern of ocean freight rates, driven by increased container demand from China and limited container availability, which could push up the landed cost of imported manganese ore in the coming weeks and provide further cost support to alloy prices.
MOIL slashes July ore prices by 5-10%, but high-cost imports cushion alloy market: State-owned MOIL Limited revised its manganese ore prices downward, effective 1 July 2026, reducing prices by 5% across all ferro-grade ores, irrespective of manganese content. In the SMGR segment, prices of 30% Mn and 25% Mn ores, fines, and chemical-grade ores were cut by 5-10%. While the revision offers some relief to domestic alloy producers, its immediate impact is expected to be limited as most smelters continue to consume higher-cost imported ore inventories.
Outlook
Domestic silico manganese prices are expected to trade in a stable-to-firm range, as the impact of higher power tariffs, costly imported ore inventories, and rising ocean freight offsets the benefit of lower MOIL ore prices. Demand from the steel sector will remain the key factor determining further price movement.
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