- Steelmakers’ restrained buying slows trade momentum
- India faces stiff price competition from Malaysia, Norway
The domestic silico manganese market in India continued to face downward pressure this week, reflecting broader weakness in the ferro alloy sector. Price tags hit a three-month low in the key production hub of Raipur amid fewer inquiries due to persistently weak buying interest in global markets.
With production levels steady in key regions, a supply surplus emerged, putting domestic producers under growing pressure to adjust their offers downward to stay competitive.
In fact, persistent oversupply and cautious procurement strategies have contributed to sustained price corrections seen in recent weeks. Even premium grades were not immune to the trend, indicating a deeper structural softness.
According to BigMint’s assessment on 26 August 2025, domestic silico manganese (60-14 grade) prices in Raipur stood at INR 70,300/t ($802/t) exw, down by INR 500/t ($6/t) w-o-w, while in Durgapur, tags were at around INR 70,200/t ($801/t), falling by INR 600/t ($7/t). Vizag saw the sharpest drop of INR 900/t ($10/t) to INR 70,000/t ($798/t). Prices in Raipur have hit a three-month low, as per data maintained with BigMint.
The premium 60-15 grade also weakened w-o-w, trading between INR 70,000-71,000/t ($798-810/t). Meanwhile, trade volumes in Raipur remained steady at approximately 1,900 t.
Confirmed deals (as per BigMint)
Market overview
Demand from steel mills weakens: The primary driver behind the silico manganese price slide is reduced demand from steel mills. Buyers are purchasing only as needed, avoiding long-term contracts amid uncertain end-user demand. Even larger mills refrained from aggressive procurement, heavily impacting market morale.
BigMint’s daily steel billet index was assessed at INR 37,000/t ($422/t) exw-Raipur on 26 August 2025, down by INR 800/t ($9/t) w-o-w.
Exports fail to offer cushion: The export market, which often provides relief during domestic slowdowns, was not able to lend support this time. Global demand remained weak, with key importers such as Europe and Southeast Asia sourcing cheaper material from elsewhere. The market also awaited clarity on the EU’s safeguards, which kept inquiries on the lower side.
Moreover, Indian silico manganese producers faced stiff price competition from countries such as Malaysia, Norway, and Ukraine. Additionally, global freight and currency fluctuations reduced the netbacks for Indian exporters.
Buyers hold back, await correction: Another key factor dragging down the market was the wait-and-watch approach from buyers. Many consumers delayed purchases, anticipating further price corrections in the coming weeks. This buyer inertia led to thinner liquidity and fewer spot deals, especially for mid and small-scale producers.
China’s silico manganese prices fall slightly w-o-w: Chinese silico manganese (Mn:65%, Si:17%) prices dropped by RMB 220/t ($31/t) w-o-w to RMB 5,700-5,970/t ($795-$833/t) exw, including taxes. Prices eased slightly, as weak manufacturing demand, coupled with subdued exports, continued to dampen overall market sentiment despite seasonal support from the automotive and infrastructure sectors.
Outlook
Silico manganese domestic prices may remain under pressure in the near term due to subdued steel demand and weak export sentiment, though any revival in steel production could stabilise market conditions.
Leave a Reply