SiMn futures fell under pressure, with a strong wait-and-see sentiment prevailing in the market [SMM SiMn Futures Review]

February 2: The SM2605 contract opened at 5,880 yuan/mt and closed at 5,834 yuan/mt, down 0.88%. The daily highest price was 5,916 yuan/mt, and the lowest price was 5,816 yuan/mt. Trading volume was 186,200 lots, and open interest was 360,081 lots. SiMn futures came under pressure and declined today. Cost side, overall manganese ore transaction prices remained high and the market was temporarily stable, providing strong cost support for SiMn alloy prices. The cost support from Inner Mongolia regional electricity prices and south China electricity prices for alloy production in 2026 is under verification, with a high likelihood of increases expected. SiMn alloy cost support remained temporarily stable at the beginning of the week. Supply side, newly added SiMn furnaces in the main northern production areas gradually started producing iron, increasing supply pressure for standard-grade SiMn. The operating rate of alloy plants in south China remained stably low. The intensity of 2026 electricity fee policies in Guangxi and Guizhou awaits verification, with most plants still maintaining off-peak production. Coupled with the approaching Chinese New Year, many manufacturers chose to temporarily halt production, adopting a wait-and-see attitude pending post-holiday electricity settlement prices. Loose SiMn supply pressure persists currently. Demand side, HBIS Group's SiMn procurement for February 2026 awaits verification. The current SiMn market continues to operate mainly with volatility.