SiMn Cost Support Strong, Market Shows Volatile Pattern [SMM SiMn Daily Review]

As of Wednesday, the SiMn 6517 (cash) price in the north China market was 5,575–5,675 yuan/mt, down 25 yuan WoW on average; in the south China market, the SiMn 6517 (cash) price was 5,625–5,675 yuan/mt, also down 25 yuan WoW on average.

Cost side, the third round of coke price increases has been implemented, and prices have stabilized after the rise; the manganese ore market held up well. Currently, the cost side of SiMn remains relatively firm.

Supply side, in early November, the SiMn market continued the weak fluctuating trend seen in October. Entering November, wait-and-see sentiment remained strong in both north and south China. North China is expected to add new SiMn capacity as planned, but the specific start-up time will closely follow market conditions. Currently, enterprises in Inner Mongolia are mainly fulfilling steel tender orders and futures warrants; Ningxia is also mainly delivering futures warrants, with little willingness to offer retail quotations. South China has officially entered the dry season, and electricity prices in Yunnan have risen, leading to expectations of production cuts at alloy plants. Most other regions in south China are operating during off-peak hours.

Demand side, steel mills began centralized maintenance in mid-to-late November, and production is expected to show a trend of first increasing and then decreasing. The volume of SiMn alloy uptake still requires continuous monitoring.

Currently, the SiMn market is in the doldrums. In November, attention should be paid to the impact of steel mill production cuts on SiMn alloy demand.