India: Downtrend in silico manganese market finally ends on steel price support

• Steel prices rise w-o-w but cautious buying seen in alloys markets
• Cost pressures keep domestic silico manganese prices firm

Indian silico manganese prices in the domestic market remained largely stable w-o-w due to need-based buying. The domestic steel mills adopted a strategic procurement approach as subdued steel demand and cautious market sentiment weighed on trade activity. Despite minor price corrections, buyers largely maintained a wait-and-watch stance in the middle of uncertainty about short-term price direction.

Silico manganese (60-14 grade) prices remained stable w-o-w across markets. In Raipur, prices remained constant at INR 69,400/t ($773/t) exw. In Durgapur, prices dropped by INR 100/t ($1/t), settling at INR 69,700/t ($776/t). Rates in Vizag moved up to INR 69,400/t ($773/t), while prices in Raigarh rose by INR 100/t ($1/t to nearly INR 68,600/t ($764/t) exw.

The premium 60-15 grade also weakened, rising slightly up by INR 100/t ($1/t) w-o-w to INR 71,400/t ($795/t).

Confirmed deals (as per BigMint)

Market overview

Steel prices inch up w-o-w, marginal relief to silico prices: The BigMint billet index rose by INR 900/t ($9) w-o-w to INR 37,700/t ex-works Raipur on 24 December, driven by strong cues from neighbouring markets and heightened price volatility. However, the rally was largely sentiment-led, with limited buying as participants adopted a wait-and-watch approach after securing material at lower levels. This environment supported domestic silico manganese prices, keeping them largely stable.

Smelters push back against lower prices: Sellers held back on offering material in the domestic market as elevated imported manganese ore prices and currency fluctuations continued to inflate production costs. With margins already thin, smelters refrained from offering discounts. A key Durgapur-based smelter informed BigMint that while some traders were selling 60-14 grade at discounted levels below INR 69,000/t exw Durgapur—creating expectations of a price correction among buyers—rising ore costs left little room for discounts on standard 60-14 material, keeping prices largely firm.

Outlook
Given the current market scenario, prices are likely to remain firm as smelters refrain from offering discounts due to rising production costs. Any correction in steel prices could lend further support silico prices. However, demand trends at steel mills and strategic output adjustments by smelters will be key determinants of the next price movement.