SiMn futures fluctuated, with strong cost support for spot price [SMM SiMn futures review]

The SM2509 contract opened at 6102 yuan/mt and closed at 6074 yuan/mt, with a decline of 0.65%. The daily highest price was 6170 yuan/mt and the lowest price was 6056 yuan/mt. Trading volume reached 314,200 lots, and open interest stood at 193,064 lots. Cost side, manganese ore prices have recently risen slightly, providing strong cost support for SiMn alloy. Supply side, the SiMn futures market has recently fluctuated at highs around the 6000 yuan/mt level, with high-position hedging observed in north China. The market sentiment for SiMn is positive. Alloy factories in both the north and south have shown good enthusiasm for production, with most factories focusing on short-term order scheduling. Coupled with low inventory pressure for alloy at factories, manufacturers exhibit a strong reluctance to budge on prices. Affected by the expected cargo procurement and transportation restrictions at Tianjin Port in late August, many SiMn alloy factories 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 6100 yuan/mt (including tax and acceptance) delivered to the factory. During HBIS's pricing period, factory quotes have risen, with factories maintaining confidence in steel mill tenders and awaiting higher prices.