MOIL’s Sharpest Manganese Ore Price Hike in Two Years — What It Signals for Indian Steel Economics

Ferro Grade (Mn ≥44%):      +15.0%
Ferro Grade (Mn <44%):      +17.5%
SMGR (Mn 30% & 25%):        +17.5%
Fines Grades:                +17.5%
Chemical Grades:             +17.5%
EMD:                         Unchanged (₹1,80,000/MT)

MOIL Limited, India’s largest manganese ore producer with approximately 53% domestic market share, has increased prices across all grades of manganese ore with immediate effect from April 6, 2026. The increases — ranging from 15% to 17.5% — represent the steepest single revision by MOIL in nearly two years.

This is not a routine quarterly adjustment. It’s a market signal that the Hormuz crisis has breached yet another wall in the steel value chain, and procurement teams across India’s ferroalloy and steel sector need to recalibrate their cost models immediately.

What Exactly Changed

MOIL has implemented a tiered pricing strategy, with higher percentage increases on lower-grade and speciality products. The structure reveals which segments of the market are under the most acute pressure.

Ferro-grade manganese ore with manganese content of 44% and above — the premium grade used directly in steelmaking and high-grade ferroalloy production — has been increased by 15%, applied over the base rates prevailing since March 1, 2026.

All ferro grades with manganese content below 44% have seen a larger increase of 17.5%. This differential is significant: it indicates that demand for mid-grade ore, often used by smaller ferroalloy smelters, is tightening faster than premium supply.

Silico manganese grade raw (SMGR) with 30% and 25% manganese content, along with fines grades and all chemical grades, have also been raised by 17.5%.

One notable exception: the price of Electrolytic Manganese Dioxide (EMD) remains unchanged at ₹1,80,000 per metric tonne for April 2026. EMD is used primarily in battery applications and pharmaceuticals rather than steelmaking, and its stability suggests the demand-supply dynamics in that segment are fundamentally different from the metallurgical market.

This revision follows a more modest 2% increase MOIL applied to select grades effective March 1, 2026. The leap from 2% to 15–17.5% within a single month underscores how rapidly global manganese markets have shifted.

Why Now: The 40% International Price Surge

The catalyst is straightforward. International manganese ore prices have surged approximately 40% over the past month, driven primarily by supply chain disruptions linked to the ongoing Hormuz crisis and broader geopolitical instability in the Middle East.

India imports a significant portion of its manganese ore requirements, particularly higher-grade material from South Africa, Australia, and Gabon. While India is a notable manganese producer itself — MOIL operates ten mines across Maharashtra and Madhya Pradesh — domestic production doesn’t fully cover demand, especially for high-grade ferro and chemical specifications.

The Hormuz-driven disruptions have compounded pre-existing fragilities in global manganese supply. The market was already sensitive entering 2026: the temporary shutdown of South32’s Groote Eylandt mine in Australia in 2024, which accounted for roughly 15% of global high-grade supply, had demonstrated how quickly manganese prices could spike when concentrated supply sources falter. That episode saw 44% manganese oxide prices surge 22% in a single quarter.

Now, with Middle East shipping lanes disrupted, freight costs elevated by 30–40%, and war risk insurance adding further premiums to seaborne cargoes, the cost of importing manganese ore into India has risen sharply. MOIL, as the domestic price setter, is aligning its pricing with the new global reality — but importantly, its 15–17.5% increase is still below the 40% international price surge, meaning domestic ore remains at a discount to imports. Indian buyers who can source from MOIL still have a cost advantage, but that advantage has narrowed considerably.

The Pricing Context: MOIL’s Trajectory This Year

This hike didn’t come from nowhere. Looking at MOIL’s pricing actions across 2026 reveals an accelerating trend that maps directly onto the Hormuz crisis timeline.

The acceleration from 3% to 2% to 15–17.5% in the space of a single quarter is the data point that should command attention. MOIL doesn’t move this aggressively without strong justification — as a Miniratna Category-I PSU under the Ministry of Steel, its pricing decisions carry policy weight and are disclosed under SEBI regulations.

Impact on India’s Ferroalloy Producers

This is where the sharpest economic pain will be felt. India’s ferroalloy sector — producers of ferro manganese, silico manganese, and related alloys — uses manganese ore as its primary feedstock. A 15–17.5% increase in ore prices translates almost directly into higher production costs.

Silico manganese, which is used in virtually all steel production as a deoxidiser and alloying agent, is the most affected downstream product. The 17.5% increase on SMGR grades (Mn 30% and Mn 25%) directly raises the cost floor for silico manganese producers, who were already operating on compressed margins due to elevated power costs.

The arithmetic is straightforward. Silico manganese production typically consumes 2.0–2.5 tonnes of manganese ore per tonne of alloy produced (varying by grade and process). A 17.5% increase on ore priced in the range of ₹6,000–12,000 per MT (depending on grade) adds approximately ₹2,000–5,000 per MT to the cost of producing one tonne of silico manganese.

For ferro manganese producers, the economics are similar but with higher ore consumption ratios. The 15% increase on premium ferro-grade ore (Mn 44%+) is somewhat cushioned by the higher realisation prices for ferro manganese, but margins will still compress.

The downstream consequence is inevitable: ferroalloy producers will push for price increases on their alloy sales to steelmakers. This means Indian steel mills face yet another layer of cost-push inflation on top of the energy, freight, and coking coal increases already working through the system from the Hormuz crisis.

Impact on Steel Production Costs

Manganese alloy consumption in steel production is relatively small on a per-tonne basis — typically 6–12 kg of manganese alloys per tonne of crude steel, depending on the grade being produced. However, at current elevated alloy prices, the cost contribution is not trivial.

If silico manganese prices rise by ₹3,000–5,000 per MT (passing through the ore price increase), and a steel mill consumes approximately 8–10 kg of silico manganese per tonne of steel, the direct cost increase to steel production is approximately ₹25–50 per tonne of steel.

In isolation, ₹25–50 per tonne sounds modest. But this is additive to the approximately ₹1,800–2,500 per tonne increase from energy costs, the approximately ₹1,000–1,500 per tonne from coking coal, and ₹200–500 from other consumables — all driven by the same underlying crisis. The MOIL hike is one more brick in a wall of cost inflation that makes further domestic steel price hikes increasingly likely.

For steel procurement teams building cost models, the manganese input line item has moved from “stable — low volatility” to “watch closely — trending up.” Update your models accordingly.

The Bigger Picture: India’s Raw Material Vulnerability

MOIL’s hike is a case study in how global supply disruptions transmit through India’s metallurgical value chain, even when the disrupted route (Hormuz) isn’t the primary supply corridor for the specific commodity.

India is the fifth-largest manganese ore producer globally, behind South Africa, Gabon, Australia, and China. MOIL alone produced 19.07 lakh MT (approximately 1.9 million tonnes) in FY2025-26 through March, and has announced ambitions to scale production to 3.5 million tonnes per annum by 2030.

Yet domestic production doesn’t fully satisfy domestic demand, particularly for higher grades. India imports manganese ore primarily from South Africa (which holds the world’s largest reserves at 640 million tonnes) and Australia. These imports are now more expensive — not because the ore itself costs more at the mine gate, but because getting it to India costs more: elevated freight, higher insurance, longer transit times from rerouting, and currency depreciation. This mirrors the pattern we documented in our analysis of raw material routes still open for Indian steel buyers.

The fact that MOIL can raise domestic prices by 15–17.5% and still remain competitive against imports tells you how dramatically the landed cost of imported ore has shifted. When the domestic monopoly producer is the cheaper option despite significant price increases, the global market has moved decisively against buyers.

This also raises a strategic question for India’s ferroalloy and steel industry: as the country targets 300 million tonnes per annum of steel capacity by 2030, how will manganese supply keep pace? MOIL’s production targets of 3.5 MTPA by 2030 are necessary but may not be sufficient. The structural dependence on imports for high-grade material creates an ongoing vulnerability to the kind of supply shocks we’re witnessing today.

What Should You Do Now

If You’re a Ferroalloy Producer

Your input costs just jumped. Don’t absorb it — begin communicating price revisions to your steel mill customers immediately. The market understands cost-pass-through during a crisis, and delaying only erodes your margins. Use MOIL’s official SEBI disclosure as supporting documentation in your pricing discussions.

If You’re a Steel Mill Procurement Manager

Build the MOIL price increase into your alloy cost projections for Q1 FY27 (April–June 2026). Your ferroalloy suppliers will be raising prices within the next 7–14 days. If you can lock in alloy purchases before those revisions hit, you gain a brief cost advantage. Refer to our detailed steel production cost breakdown for the full picture of how all inputs are moving simultaneously.

If You’re a Steel Trader or Stockholder

This is another data point confirming the upward cost trajectory for Indian steel. Every major input — energy, coking coal, freight, and now manganese ore — is moving against producers simultaneously. The floor under domestic steel prices just got higher. Read our buy now or wait framework for guidance on procurement timing.

If You’re Tracking the Hormuz Crisis Impact

Add manganese to your watchlist. It wasn’t in most people’s initial crisis impact assessments, which focused on oil, LNG, and coking coal. The 40% international price surge demonstrates how broadly the Hormuz disruption is radiating through commodity markets — even commodities that don’t transit the Strait directly are affected through freight market tightness and general supply chain stress.

Frequently Asked Questions

How much has MOIL increased manganese ore prices in April 2026?

MOIL has increased ferro-grade manganese ore (Mn 44% and above) by 15%, and all other grades including ferro grades below 44% Mn, SMGR (Mn 30% and 25%), fines, and chemical grades by 17.5%. The increases are effective from April 6, 2026, applied over base rates prevailing since March 1, 2026. EMD prices remain unchanged at ₹1,80,000 per MT.

Why did MOIL raise manganese ore prices so sharply?

International manganese ore prices have surged approximately 40% over the past month due to supply disruptions linked to the Hormuz crisis and geopolitical tensions in the Middle East. Higher freight costs, war risk insurance premiums, and general supply chain stress have significantly increased the landed cost of imported manganese ore into India, prompting MOIL to align domestic pricing upward.

How does the MOIL price hike affect steel production costs?

The increase adds approximately ₹2,000–5,000 per MT to ferroalloy production costs (particularly silico manganese). For steelmakers consuming 8–10 kg of silico manganese per tonne of steel, the downstream impact is approximately ₹25–50 per tonne of crude steel. This is additive to existing cost pressures from energy, coking coal, and freight.

What is MOIL’s market share in India’s manganese ore production?

MOIL holds approximately 53% of India’s domestic manganese ore production. It is a Miniratna Category-I PSU under the Ministry of Steel, operates ten mines across Maharashtra and Madhya Pradesh, and is the country’s only manufacturer of Electrolytic Manganese Dioxide (EMD). MOIL produced 19.07 lakh MT of manganese ore in FY2025-26 through March 2026.

Will manganese ore prices continue to rise?

This depends primarily on the duration and resolution of the Hormuz crisis. If geopolitical tensions persist and global supply chains remain disrupted, further increases are possible. MOIL’s pricing trajectory in 2026 — from 3% in January to 15–17.5% in April — suggests the company expects the elevated price environment to persist in the near term.

Data Sources & Verification

• MOIL Limited SEBI disclosure under Regulation 30 (LODR), dated April 1 and April 6, 2026
• SteelOrbis India market report, April 6, 2026
• MOIL investor disclosures via NSE/BSE (MOIL: NSE, 533286: BSE)
• MOIL March 1, 2026 price revision: 2% increase on select ferro and SMGR grades
• MOIL January 2026 quarterly revision: 3% increase on ferro grades; EMD reduced to ₹1,90,000/MT
• MOIL FY26 production: 19.07 lakh MT cumulative through March 2026; March single-month production 1.64 lakh MT
• MOIL market share: approximately 53% of India’s domestic manganese ore production
• MOIL 2030 production target: 3.5 million tonnes per annum
• South Africa manganese reserves: 640 million tonnes (SFA Oxford)
• Groote Eylandt disruption (2024): 15% global high-grade supply impact, 22% price surge (SFA Oxford)

Prices are indicative and based on publicly available market intelligence. Actual transaction prices may vary. Verify with your supplier before making procurement decisions. SteelMath is not a licensed price reporting agency.

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