SiMn futures fluctuate rangebound, spot price approaches cost line [SMM SiMn Futures Review]

December 1 - News: The SM2601 contract opened at 5,622 yuan/mt and closed at 5,724 yuan/mt, up 1.85%. The highest price during the daytime session was 5,786 yuan/mt, and the lowest price was 5,618 yuan/mt. Trading volume was 256,200 lots, and open interest was 253,444 lots. Today, futures fluctuated rangebound. Cost side, the manganese ore market remained firm, with traders confident in holding prices firm, providing strong cost support for SiMn. Supply side, alloy plants in north China maintained normal production pace, while new capacity in Inner Mongolia recently commenced operation, increasing supply-side pressure; overall operating rates in south China remained relatively low, with supply release remaining stable. Demand side, a new round of steel mill tenders is gradually unfolding, and the support for the silicon market still needs to be verified. Overall, spot SiMn prices were in the doldrums, fluctuating around the cost line.