Cost remains firm, and SiMn prices rise slightly [SMM SiMn Daily Review]

On August 13: As of Wednesday this week, the price of SiMn alloy 65/17 (cash) in the north China market ranged from 5,800 to 5,900 yuan/mt, up 125 yuan WoW from Wednesday last week; in the south China market, the price of SiMn alloy 65/17 (cash) ranged from 5,825 to 5,925 yuan/mt, up 125 yuan WoW from Wednesday last week.

Cost side, manganese ore prices have risen slightly recently, providing strong cost support for SiMn alloy.

Supply side, futures prices for SiMn have fluctuated at highs around the 6,000 yuan/mt level recently, with high-position hedging observed in north China. Market sentiment for SiMn is positive. Alloy plants in both north and south China have shown good enthusiasm for production, with most plants focusing on short-term order scheduling. Coupled with low inventory pressure for alloy plants, manufacturers have a strong reluctance to budge on prices. Affected by the expected policy restrictions on procurement and transportation at Tianjin Port in late August, many SiMn alloy plants in the region have chosen to pick up goods in advance.

Demand side, the basic procurement pricing for SiMn by domestic steel mills this month is around 6,100 yuan/mt (acceptance, tax included, delivered to plant). During HBIS's pricing period, plant quotes have risen, with plants maintaining confidence in steel mill tenders and awaiting higher tender prices.

Overall, the SiMn alloy market is showing a positive and improving trend, with spot prices steadily rising and trading activity remaining active. The market is awaiting the guidance of steel mill tender pricing on the SiMn market.