【SMM Analysis：SiMn Alloy Oversupply, Market Fluctuates Downward.】

Published: Oct 19, 2024 10:08

Source: SMM

Save

【SMM Analysis：SiMn Alloy Oversupply, Market Fluctuates Downward.】Futures market: In September, the most-traded contract fluctuated around 6,156 yuan/mt. The highest settlement price was 6,548 yuan/mt at 10:15, down 3.54% MoM from 6,788 yuan/mt, with the lowest at 5,958 yuan/mt. Throughout the month, the futures market experienced significant volatility. Under the supply-demand imbalance, SiMn alloy prices fluctuated downward. Spot market: Currently, there are still some cost differences between north and south China. In September, manganese ore and coke prices fluctuated downward. Inner Mongolia remains an area with electricity cost advantages, while electricity prices in other regions showed little fluctuation. Due to the decline in material prices, SiMn alloy production costs decreased, alleviating some losses on production for SiMn alloy plants. Overall, north China still has cost advantages. Supply side, the main production areas in north China saw little fluctuation in production due to lower production costs. In south China, the main production areas saw a slight decrease in production due to severe losses on production, and previously halted SiMn alloy plants have no production resumption plans. Demand side, downstream demand for SiMn alloy in September did not meet the expectations of the traditional peak season, and steel mills showed weak enthusiasm for purchasing SiMn alloy. Overall, the oversupply situation of SiMn alloy has not changed, and spot prices of SiMn alloy are on a downward trend. Additionally, according to SMM, entering October, steel mills' production schedules are expected to increase, showing stronger enthusiasm for purchasing SiMn alloy. However, SiMn alloy production remains high, and combined with previous inventory, the oversupply situation in the SiMn alloy market has not changed. With limited downstream demand support, the price outlook for SiMn alloy is expected to continue fluctuating downward.

Futures market: In September, the most-traded contract fluctuated around 6,156 yuan/mt. The highest settlement price was 6,548 yuan/mt at 10:15, down 3.54% MoM from 6,788 yuan/mt, with the lowest at 5,958 yuan/mt. Throughout the month, the futures market experienced significant volatility. Under the supply-demand imbalance, SiMn alloy prices fluctuated downward.

Spot market: Currently, there are still some cost differences between north and south China. In September, manganese ore and coke prices fluctuated downward. Inner Mongolia remains an area with electricity cost advantages, while electricity prices in other regions showed little fluctuation. Due to the decline in material prices, SiMn alloy production costs decreased, alleviating some losses on production for SiMn alloy plants. Overall, north China still has cost advantages. Supply side, the main production areas in north China saw little fluctuation in production due to lower production costs. In south China, the main production areas saw a slight decrease in production due to severe losses on production, and previously halted SiMn alloy plants have no production resumption plans. Demand side, downstream demand for SiMn alloy in September did not meet the expectations of the traditional peak season, and steel mills showed weak enthusiasm for purchasing SiMn alloy. Overall, the oversupply situation of SiMn alloy has not changed, and spot prices of SiMn alloy are on a downward trend.

Additionally, according to SMM, entering October, steel mills' production schedules are expected to increase, showing stronger enthusiasm for purchasing SiMn alloy. However, SiMn alloy production remains high, and combined with previous inventory, the oversupply situation in the SiMn alloy market has not changed. With limited downstream demand support, the price outlook for SiMn alloy is expected to continue fluctuating downward.

Market review

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Jul 3, 2026 21:29

Shanxi Kelite to Launch $100M Light Alloy Die-Casting Project in July, Targeting Robotics and EV Markets

[SMM Magnesium Express]Recently, it was reported that Shanxi Kelite Precision Casting Technology Co., Ltd. plans to officially commence production of its light alloy integrated die-casting project in mid-July. With a total investment of 100 million yuan, the project can produce 8 million lightweight robotic precision structural components annually, primarily serving sectors such as meal-delivery robots, household service robots, and new energy vehicles. Leveraging Shanxi's magnesium ore resource advantages, the company has successfully transformed from a traditional pipe-casting enterprise into a high-end precision manufacturing entity. It has introduced cold high-pressure die-casting core technologies and established a provincial-level doctoral entrepreneurship station in collaboration with North University of China. With the project's launch, the large-scale application of magnesium alloy in intelligent robotics and new energy vehicles is expected to deepen further, accelerating the transition of traditional casting enterprises toward high-end magnesium alloy manufacturing.

Jul 3, 2026 21:29

Jul 3, 2026 21:27

IML and Chongqing Yujang Die-Casting Partner for Semi-Solid Magnesium Alloy Advancements

[SMM Magnesium Express]On July 3, IML and Chongqing Yujang Die-Casting officially established a strategic partnership in semi-solid magnesium alloy forming technology. The two parties will collaborate closely on technological R&D, mass production breakthroughs, and market applications, while deploying multiple large-scale semi-solid injection molding equipment for magnesium alloys. The cooperation aims to integrate the entire chain from materials and processes to mass production, focusing on scaling up the application of magnesium alloys in critical components such as electric drive housings and vehicle structural parts. This will provide high-performance lightweight solutions for industries like new energy vehicles, 3C electronics, and humanoid robots. With continuous progress in industrial chain collaboration, the mass production barriers for semi-solid magnesium alloy forming are expected to be accelerated, further speeding up the process of large-scale application.

Jul 3, 2026 21:27

Jul 3, 2026 18:37

[SMM Tungsten Analysis] Global Tungsten Markets Diverge in June: China Pulls Back, Europe Holds High

In June, global scrap tungsten markets diverged. India followed China's tungsten price rally, with active trading and higher prices in mid-June before cooling as China softened. Europe saw low-level consolidation due to high speculative inventories, but prices began to edge up in late June as stocks cleared. China's tungsten market experienced a sharp rebound followed by a pullback, and is expected to consolidate in the near term, while medium-to-long-term fundamentals remain solid.

Jul 3, 2026 18:37