Futures in the doldrums, SiMn prices stabilize [SMM Manganese Silicon Futures Review]

On August 27, the SM2601 contract opened at 5,860 yuan/mt and closed at 5,832 yuan/mt, down 0.92%, with the highest price of the day at 5,886 yuan/mt and the lowest at 5,824 yuan/mt. The trading volume was 129,535 lots, and the open interest was 306,000 lots. The futures market continued to be in the doldrums, with spot SiMn alloy prices remaining stable. In terms of cost, manganese ore and coke prices remained at a relatively high level, providing ongoing cost support. In terms of supply, SiMn alloy plants were mainly fulfilling orders, with relatively small inventory pressure. The willingness to sell at low prices was low, and most alloy plants adopted a wait-and-see attitude. On the buyer side, steel mills in east China mostly focused on purchasing at around 5,950 yuan/mt (including tax and delivery), continuing to drive down purchasing prices. The current SiMn market is operating in the doldrums.