SiMn futures fluctuate rangebound, spot price in the doldrums [SMM SiMn Futures Review]

December 2 — The SM2601 contract opened at 5,702 yuan/mt and closed at 5,722 yuan/mt, down 0.07%. The highest price during the daytime session was 5,748 yuan/mt, and the lowest was 5,692 yuan/mt. Trading volume was 121,900 lots, and open interest stood at 227,457 lots. Futures showed a fluctuating trend within a narrow range. 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 schedules, while new capacity in Inner Mongolia recently came online, increasing supply-side pressure. In south China, overall operating rates remained relatively low, and supply release was stable. Spot SiMn prices in producing regions fluctuated around the cost line, with significant loss pressure. Demand side, a new round of steel mill tenders was gradually unfolding, but the market's absorption capacity for SiMn remained to be verified. Overall, as the market awaited new steel tender prices, spot SiMn prices were expected to remain in the doldrums in the short term.