Downstream Steel Mills Are Cautious in Procurement, SiMn Alloy Spot Prices Fluctuate Downward [SMM Analysis]

[SMM Analysis: Cautious Purchasing by Downstream Steel Mills, SiMn Alloy Spot Prices Fluctuate Downward] In the spot market, there remains a certain cost difference between the northern and southern regions. In December, due to pre-Chinese New Year stockpiling demand from alloy plants, the purchasing enthusiasm for manganese ore was relatively high. Coupled with a slight rise in overseas manganese ore quotes, miners showed strong sentiment to stand firm on quotes, leading to a slight rise in the manganese ore spot market. As manganese ore inventory at southern ports remained relatively low, spot quotes in the southern manganese ore market were firm. Additionally, the impact of high electricity costs in the south resulted in the northern region maintaining cost advantages compared to the southern region. Supply side, northern SiMn alloy plants, benefiting from lower production costs, saw some previously ignited plants start production, with production expected to increase slightly. In contrast, southern SiMn alloy plants, facing significant production pressure, showed a stronger willingness to reduce or halt production. Overall, the increase in production is expected to outweigh the reduction, leading to an overall increase in SiMn alloy production. Demand side, in December, some steel mills showed pre-Chinese New Year stockpiling demand, with downstream steel mills demonstrating strong purchasing enthusiasm for SiMn alloy. However, they tended to bargain down purchasing prices for SiMn alloy. Overall, the supply surplus in the SiMn alloy market remains unchanged. Coupled with the pressure from steel mills bargaining down prices, SiMn alloy spot prices fluctuated downward. Additionally, according to SMM, entering January, some SiMn alloy plants are expected to undergo year-end maintenance. Furthermore, southern SiMn alloy plants are expected to halt production due to production pressure. On the demand side, downstream steel mills are expected to engage in pre-Chinese New Year stockpiling. Overall, supported by downstream demand, SiMn alloy prices are expected to fluctuate upward in the future market.