Indian smelters eye higher silico manganese prices amid rising power costs

• CSERC tariff revision to raise electricity tariffs by 40 paise from 1 July
  
  
• Low inventories, mounting input costs to sustain domestic price uptrend
  
  

Indian silico manganese prices continued their upward trajectory in the week ended 16 June 2026, driven by tight spot availability and higher power tariffs in key producing regions, which have raised production costs and strengthened producers' pricing power. The uptrend was further supported by healthy export demand, with increased buying interest from overseas markets diverting material away from the domestic market and tightening supply. As a result, smelters maintained firm offers and buyers were compelled to accept higher prices amid limited availability.

As per BigMint's assessment, domestic silico manganese prices increased across key markets. Raipur prices rose by INR 500/t ($5/t) w-o-w to INR 76,500/t exw ($809/t), while in Vizag prices rose by INR 700/t ($6/t) to INR 75,700/t ($801/t). Durgapur recorded an increase of INR 500/t ($5/t) to INR 75,900/t ($803/t), and Raigarh prices edged up by INR 500/t ($5/t) to INR 75,600/t ($800/t).

Confirmed deals (as per BigMint)

Factor supporting domestic prices

Chhattisgarh electricity tariff hike adds cost pressure: Recent reports indicate that the Chhattisgarh State Electricity Regulatory Commission (CSERC) has approved an average 6.23% increase in power tariffs, effective 1 July 2026. For industrial consumers, the revision entails a 40 paise/unit hike in energy charges, along with an additional 5 paise/unit increase stemming from higher demand charges, taking the total impact to around 45 paise/unit for 33 kV connections and 35 paise/unit for 132 kV connections. Market participants noted that, after factoring in electricity duty, the effective increase could reach 48-50 paise/unit.

Since power accounts for a significant share of ferro alloy production costs, the tariff revision is expected to raise silico manganese production costs by around INR 1,500-2,000/t ex-works Raipur from 1 July. Some smelters indicated that the full impact could exceed INR 2,000/t, strengthening the cost floor for domestic prices and limiting downside amid already tight supply conditions and healthy export demand.

Export prices edge up on elevated ore costs: Indian silico manganese export prices edged higher in the week ended 15 June 2026, driven by persistent cost-push pressures and stronger buyer acceptance. According to BigMint, HC 65-16 grade prices rose by $6/t w-o-w to $918/t FOB, while 60-14 grade prices increased by $6/t to $825/t FOB Haldia/Vizag.

Smelters continued to consume high-cost manganese ore inventories procured in April, when South African Mn 37% ore rose by $0.48/dmtu m-o-m to $5.53/dmtu, Gabonese Mn 44% ore increased by $0.46/dmtu to $6.02/dmtu, and Australian Mn 46% ore gained $0.49/dmtu to $6.43/dmtu.

Elevated ore costs raised alloy production costs by around $25-30/t, strengthening sellers' pricing power. Improved demand from key overseas markets and expectations of tighter future availability enabled producers to pass on higher costs, while reduced allocations from major miners kept ore prices firm, reinforcing bullish sentiment in the export market.

Outlook

Indian silico manganese prices are expected to remain firm in the near term, supported by tight spot availability, elevated manganese ore costs, and the impending power tariff hike in Chhattisgarh, which is likely to raise production costs from 1 July 2026. Steady export demand and improved overseas price realization may further support domestic sentiment, although subdued domestic steel demand and cautious procurement by mills could limit sharper gains.