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Metallurgy, Ferroalloys, and Manganese Ore:
April 2026 Market Analysis
April 2026 Market Analysis
Katowice, Poland – 11 May 2026
The global metallurgical market in April 2026 was defined by a sharp divergence in regional performance. While India maintained its trajectory as a high-growth hub, China saw a slight cooling of momentum, and Europe prepared for a transformative shift in its trade and carbon regulations.
1. Steel and Metallurgy: Regional Divergence
China’s steel sector returned to mild contraction in April. The steel sector PMI fell to 49.2, with the production index dropping 4.6 points to 48.7. Despite this, the broader manufacturing environment remained resilient, with some private surveys hitting their strongest readings since late 2020. This suggests that while property-linked steel demand is lagging, industrial manufacturing remains a pillar of support.
In contrast, India continues to act as the industry’s global growth engine. Crude steel production rose 5.8% year-on-year to 14.09 million tonnes, while finished steel consumption surged by 8.1%. This robust domestic demand, driven by infrastructure and construction, is providing critical price support for raw materials.
Globally, the outlook remains cautious. The World Steel Association projects a modest 0.3% growth in demand for 2026, with Europe expecting a “tepid” 1.3% recovery fueled largely by defense and infrastructure spending.
2. Manganese Ore and Ferroalloys
The standout event in April was the aggressive tightening of the manganese ore market. MOIL implemented a significant price hike:
• High-grade ferro ores (Mn ≥ 44%): Increased by 15%.
• Lower grades, SMGR, and fines: Increased by 17.5%.
• EMD: Remained stable at Rs 180,000/MT.
These double-digit increases reflect a “step-change” driven by firm Indian demand and tightening international supply. This surge has created a higher cost base for ferroalloy producers, who are now pushing for higher prices to protect conversion margins, even in regions where finished steel demand has yet to fully accelerate.
3. Europe: A New Trade Era
April brought clarity to the European trade landscape with the finalization of the post-June safeguard framework.
• The New Measure: Starting July 1, 2026, tariff-free quotas will be set at 18.3 million tonnes annually.
• Protective Barriers: Imports exceeding this quota will face a steep 50% tariff (doubling the previous 25%).
• CBAM Pressures: Simultaneously, the Carbon Border Adjustment Mechanism (CBAM) is introducing significant price volatility. Provisional costs for imported steel are estimated between €150 and €550 per tonne, fundamentally altering the economics of importing carbon-intensive steel.
4. Outlook for May 2026
The industry enters May with a “cautiously constructive” stance. While India’s momentum and rising raw material costs provide a price floor, global upside is limited by China’s sluggish demand and the complexities of European policy implementation.
Key Risks:
• Margin Squeeze: If finished steel prices do not rise to meet the inflated cost of manganese ore, alloy producers will face significant margin pressure.
• Policy Distortion: The transition to new EU safeguards and CBAM costs may cause erratic trade flows and delay traditional seasonal restocking.
***
Primeore Trading (Polska) Sp. z o.o. is a trading arm of Primeore Ltd. which is responsible for handling of all international trading and trading-related operations of the group. The company is involved into operations with manganese ore, ferroalloys, coke and coal products worldwide.
Media contacts
For further information please contact office.poland@primeore.eu
The global metallurgical market in April 2026 was defined by a sharp divergence in regional performance. While India maintained its trajectory as a high-growth hub, China saw a slight cooling of momentum, and Europe prepared for a transformative shift in its trade and carbon regulations.
1. Steel and Metallurgy: Regional Divergence
China’s steel sector returned to mild contraction in April. The steel sector PMI fell to 49.2, with the production index dropping 4.6 points to 48.7. Despite this, the broader manufacturing environment remained resilient, with some private surveys hitting their strongest readings since late 2020. This suggests that while property-linked steel demand is lagging, industrial manufacturing remains a pillar of support.
In contrast, India continues to act as the industry’s global growth engine. Crude steel production rose 5.8% year-on-year to 14.09 million tonnes, while finished steel consumption surged by 8.1%. This robust domestic demand, driven by infrastructure and construction, is providing critical price support for raw materials.
Globally, the outlook remains cautious. The World Steel Association projects a modest 0.3% growth in demand for 2026, with Europe expecting a “tepid” 1.3% recovery fueled largely by defense and infrastructure spending.
2. Manganese Ore and Ferroalloys
The standout event in April was the aggressive tightening of the manganese ore market. MOIL implemented a significant price hike:
• High-grade ferro ores (Mn ≥ 44%): Increased by 15%.
• Lower grades, SMGR, and fines: Increased by 17.5%.
• EMD: Remained stable at Rs 180,000/MT.
These double-digit increases reflect a “step-change” driven by firm Indian demand and tightening international supply. This surge has created a higher cost base for ferroalloy producers, who are now pushing for higher prices to protect conversion margins, even in regions where finished steel demand has yet to fully accelerate.
3. Europe: A New Trade Era
April brought clarity to the European trade landscape with the finalization of the post-June safeguard framework.
• The New Measure: Starting July 1, 2026, tariff-free quotas will be set at 18.3 million tonnes annually.
• Protective Barriers: Imports exceeding this quota will face a steep 50% tariff (doubling the previous 25%).
• CBAM Pressures: Simultaneously, the Carbon Border Adjustment Mechanism (CBAM) is introducing significant price volatility. Provisional costs for imported steel are estimated between €150 and €550 per tonne, fundamentally altering the economics of importing carbon-intensive steel.
4. Outlook for May 2026
The industry enters May with a “cautiously constructive” stance. While India’s momentum and rising raw material costs provide a price floor, global upside is limited by China’s sluggish demand and the complexities of European policy implementation.
Key Risks:
• Margin Squeeze: If finished steel prices do not rise to meet the inflated cost of manganese ore, alloy producers will face significant margin pressure.
• Policy Distortion: The transition to new EU safeguards and CBAM costs may cause erratic trade flows and delay traditional seasonal restocking.
***
Primeore Trading (Polska) Sp. z o.o. is a trading arm of Primeore Ltd. which is responsible for handling of all international trading and trading-related operations of the group. The company is involved into operations with manganese ore, ferroalloys, coke and coal products worldwide.
Media contacts
For further information please contact office.poland@primeore.eu
