- Weak steel demand weighs on silico prices
- High costs, muted exports deepen market gloom
Domestic silico manganese prices witnessed a marked decline, primarily driven by a significant slowdown in steel sector demand. Manufacturing orders remained muted as mills curtailed production ahead of year-end maintenance shutdowns, reducing their raw-material offtake.
On the other hand, global uncertainties and softening downstream demand dampened trader enthusiasm leading to subdued sentiments in the export market, which weighed on domestic silico manganese prices.
According to BigMint’s assessment on 9 December, silico manganese (60-14 grade) prices declined across major markets. In Raipur, prices slipped by INR 100/t ($1/t) to INR 69,500/t ($773/t) exw.
In Durgapur prices dropped by INR 300/t ($3/t), settling at INR 70,000/t ($779/t). Rates in Vizag eased by INR 200/t ($2/t) to INR 69,200/t ($770/t), while Raigarh recorded the steepest fall of INR 800/t ($9/t), bringing prices down to INR 68,500/t ($763/t) exw.
The premium 60-15 grade also weakened, falling by INR 600/t ($7/t) w-o-w to INR 71,600/t ($797/t). Reduced steel sector demand exerted downward pressure on premium grade.
Confirmed deals (as per BigMint)
Market overview
Inventory overhang, tepid trading intensify pressure: Heightened inventory levels across key trading hubs added another layer of pressure, amplifying the price correction. Traders reported slower dispatches as downstream buyers deferred purchases in anticipation of additional price cuts.
With export enquiries remaining uninspiring and domestic steel margins tightening, buying sentiment weakened across the board. This cautious approach, coupled with high stock availability, compelled sellers to trim quotations to stimulate transactions, thereby reinforcing the w-o-w decline across both bulk and premium alloy grades.
Smelters face higher costs amid weak realisations: Domestic smelters operated in a challenging environment as elevated production costs-particularly power tariffs and manganese ore expenses-continued to erode margins. Despite cost pressure, smelters refrained from aggressive price hikes due to the weak appetite from steelmakers, resulting in squeezed realisations. Several units opted to moderate output to avoid inventory buildup, while others reported operating at suboptimal utilisation rates. This restrained production, though intended to stabilise prices, could not offset the broader demand slowdown, leading to further price easing.
Muted export demand adds to pressure: Export markets offered little respite, with global buyers adopting a cautious procurement stance on softer steel output in key consuming regions. Competitive offers from overseas suppliers further narrowed India’s export window, reducing order flows for domestic producers. With international prices mirroring the domestic downtrend, exporters faced limited arbitrage opportunities. The absence of robust export pull, combined with weak domestic offtake, left the market structurally oversupplied.
According to BigMint’s assessment on 9 December, India’s silico manganese export prices registered a mild w-o-w decline of roughly around $3/t across both grades. The 65-16 variant slipped to $900/t FOB from $912/t FOB, while the 60-14 grade softened by $3/t to $815/t FOB.
Outlook
Silico manganese prices may remain under mild pressure on weak steel demand and sluggish exports, though gradual restocking by mills post maintenance shutdowns may lend some support towards late-December.
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