- Weak overseas enquiries, softer rupee deepen pressure on exports
- Chinese silico manganese prices drop by RMB 90/t w-o-w
Indian silico manganese export prices extended their decline in the week ended 18 May 2026, pressured by aggressive low-priced deals and weak overseas demand. Prices for 65-16 grade fell by $12/t w-o-w to $905/t FOB, the lowest level in five months, while 60-14 grade dropped by $24/t to $818/t FOB, hitting a two-month low.
The correction reflects a combination of weaker buying interest from overseas where steel mills continue to procure cautiously amid sluggish finished steel demand and geopolitical uncertainty. At the same time, declining imported manganese ore prices have reduced raw material costs, enabling exporters to lower offer levels to secure bookings. Softer domestic alloy prices and rising competition among Indian suppliers have further intensified pressure, keeping export sentiment subdued in the near term.
Market overview
Rupee depreciation, high shipping costs curb export demand: Higher freight rates, limited downstream steel demand, and the depreciation of the Indian rupee against the US dollar have significantly dampened export buying from key destinations, particularly Europe and the MENA region, with only sporadic interest from Asia. A weaker rupee has increased the landed cost of imported manganese ore and raised working capital requirements for alloy producers, despite the recent decline in ore prices.
At the same time, elevated crude oil prices and geopolitical tensions in the Middle East have pushed up ocean freight costs, eroding the competitiveness of Indian silico manganese in overseas markets. One major smelter noted that enquiries at ports remain thin, as high freight and cautious steel mill procurement continue to delay fresh bookings.
The rupee has recently fallen to record lows near INR 96 per US dollar, reflecting pressure from rising oil import costs, a widening trade deficit, and sustained foreign capital outflows, all of which have added to exporters’ costs.
China’s silico manganese prices extend losses: Chinese silico manganese prices (Mn 65%, Si 17%) declined further w-o-w by RMB 90/t to RMB 5,680-6,020/t ($834-884/t) ex-works, down from RMB 5,790-6,090/t ($850-895/t) in the previous week. The market remained under pressure as weak downstream steel demand and persistent oversupply continued to outweigh limited cost support.
Prices softened amid elevated inventories and sluggish spot trading activity, reflecting cautious procurement by steel mills and traders. Although production in some regions in south India remained constrained by high electricity tariffs, the impact on supply was largely offset by substantial warehouse stocks and ample material availability, keeping overall market sentiment bearish.
Outlook
Indian silico manganese export prices remain bearish, with weak demand, high freight, and softer ore costs likely to keep offers under pressure.
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