SiMn futures fluctuated upward, while the price rise lacked momentum. [SMM SiMn Futures Review]

On September 4, the SM2601 contract opened at 5,702 yuan/mt and closed at 5,730 yuan/mt, down 0.24%. The daily highest price was 5,762 yuan/mt, and the lowest was 5,686 yuan/mt. Trading volume reached 134,880 lots, while open interest stood at 339,044 lots. During the daytime session, futures fluctuated upward, but market sentiment for SiMn remained bearish. Cost side, manganese ore and coke prices remained at a relatively high level, providing cost support. Supply side, current mill operations showed relatively small fluctuations, with spot cargoes in tight supply. Except for a few mills that hedged at earlier high levels, most mills already faced losses. If futures continue to hover at low levels, production cuts may follow. Demand side, the market awaits actual SiMn alloy procurement by steel mills after the military parade.