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| India manganese alloy |
EU Safeguards and Carbon Costs Hit Indian Exports
The European Union's 2026 quotas and carbon border levy are sharply reducing India manganese alloy 2026 exports. Europe accounts for roughly 40% of India's ferro-alloy shipments. Consequently, domestic oversupply may intensify, pressuring prices and squeezing margins. Smaller smelters face the highest risk, as alternative markets cannot fully absorb excess volumes. Exporters may delay cargoes to comply with quotas, causing early 2026 supply irregularities.
Falling Prices and Market Adjustments
Indian manganese alloy prices have already declined, with 60% silico-manganese at $780–800/t FOB in December, down from $840–860/t. 65% alloys dropped to $895–910/t FOB. As oversupply continues, traders expect an additional 5–10% decrease. Large producers are exploring Asia, the Middle East, and Africa for alternative outlets, yet competition may drive prices lower. Meanwhile, smaller smelters risk output cuts or operational suspensions without immediate relief.
Carbon Border Adjustment and Future Challenges
The EU’s Carbon Border Adjustment Mechanism (CBAM) adds 5–10% to imported alloy prices from January 2026. Ferro-manganese with default carbon intensity incurs roughly €165/t extra cost. Consequently, Indian producers must adopt low-emission technologies to remain competitive, a challenge for smaller smelters. Policy pressures and limited alternative markets imply a slow, uncertain first half of 2026, with inventories rising and export visibility constrained.
ScrapInsight Commentary
EU quotas and CBAM implementation are set to structurally weaken India manganese alloy 2026 exports. Price declines, oversupply, and limited alternative markets highlight the urgency for production adjustments and cost-control investments.
