Market Sentiment Weakens as Steel Bidding Falls Short of Expectations [SMM Weekly Review]

As of this Friday, the price of SiMn alloy 65/17 (cash) in the northern market was 6,100-6,300 yuan/mt, down 50 yuan/mt WoW; in the southern market, it was 6,200-6,400 yuan/mt, also down 50 yuan/mt WoW. According to SMM, in terms of supply, producers in the main production areas of SiMn showed a strong willingness to cut production this week. However, no large-scale production cuts have been observed in northern SiMn plants, while southern SiMn plants that have halted production have no plans to resume. Many SiMn plants have stopped quoting prices, focusing mainly on fulfilling existing orders. Further production cuts are likely after these orders are completed. Demand side, downstream steel mills showed weak enthusiasm for purchasing SiMn, resulting in fewer new orders for SiMn plants. This week, mainstream steel mills entered the market, with the volume of steel bidding decreasing MoM, and the first round of inquiries falling short of factory expectations. Overall, SiMn continued to operate weakly this week, with prices slightly declining. Due to weak market demand, SiMn is expected to continue its weak trend in the future. Close attention should be paid to the bidding prices of mainstream steel mills.