- Higher billet realisations strengthen silico manganese fundamentals
- Domestic price floor strengthens on steel demand, elevated costs
Domestic silico manganese prices have edged higher on week ending 25 August 2026, supported by a firmer downstream market and with regular export inquiries for Indian material. The recent uptick in buying interest, coupled with limited spot availability, has strengthened sellers’ bargaining power. Key producers are reportedly holding substantial bookings through mid-September 2026, further limiting near-term availability. BigMint’s latest assessments also indicate resilient domestic prices alongside firm export offers.
According to BigMint’s assessment, domestic silico According to BigMint’s assessment, domestic silico manganese prices increased week-on-week across major markets, supported by firmer demand and improved market sentiment. Raipur prices rose by INR 900/t ($9/t) to INR 74,500/t ($781/t) exw, while Vizag and Durgapur prices increased by INR 700/t ($7/t) each to INR 74,000/t ($776/t) exw. Raigarh prices also climbed by INR 800/t ($8/t) to INR 73,800/t ($774/t) exw.
On the cost side, the landed cost of imported manganese ore remains elevated due to higher ocean freight, despite easing offers from major miners. This is providing additional cost support to alloy producers and limiting the scope for aggressive price reductions. While softer miner offers could eventually ease raw-material pressure, elevated logistics costs and improving downstream sentiment are currently offsetting the impact.
Confirmed deals as per BigMint
Market overview
Billet rally lifts SiMn price floor as raw material costs and spot availability tighten: BigMint’s billet index rose sharply by INR 900/t w-o-w to INR 40,700/t exw-Raipur on 26 August 2026, driven by persistent increases in raw material costs and tightening spot availability. Firmer price indications from northern India further improved market sentiment, adding to price volatility in Raipur.
Trading activity remained relatively healthy across various price levels, while a gradual improvement in semi-finished steel demand supported moderate billet bookings. However, the recovery in finished steel demand remains subdued, limiting buyers’ confidence in the durability of the rally. Provide additional upside support to domestic SiMn prices by improving the steel value chain and strengthening producers’ price expectations. Higher billet realisations improve the downstream economics for steelmakers, potentially encouraging restocking and supporting alloy consumption.
Elevated freight-driven ore costs strengthen domestic SiMn price floor: Rising ocean freight costs continued to inflate the landed cost of imported manganese ore, partly offsetting the recent easing in miners’ offers. Freight-related increases of around $8-12/t in delivered ore costs, depending on origin and route, have kept the replacement cost for Indian SiMn producers elevated. For smelters with a high dependence on imported ore, this is translating into higher production costs and limiting the scope for aggressive price reductions.
The higher raw-material replacement cost is providing a stronger floor to domestic SiMn prices, particularly as spot ore availability remains relatively tight. Producers are therefore likely to maintain firm offers to protect margins, even as downstream steel demand remains mixed. However, the ability to fully pass these higher production costs through to alloy prices remains dependent on steel demand and buying activity. With billet prices strengthening sharply, downstream price realisation is currently providing additional support to SiMn producers.
Outlook
Domestic SiMn prices are expected to remain firm with an upward bias in near short term, supported by higher billet prices, elevated ore replacement costs and tight spot availability. Sustained steel demand could drive further gains, while subdued finished-steel realisations may cap the upside.
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