SiMn Futures Under Pressure with Fluctuations, Market Awaits Steel Tender Prices [SMM SiMn Futures Review]

December 5: The SM2603 contract opened at 5,752 yuan/mt and closed at 5,758 yuan/mt, down 0.42%. The highest price during the daytime session was 5,784 yuan/mt, and the lowest price was 5,740 yuan/mt. Trading volume reached 162,500 lots, and open interest stood at 263,926 lots. Futures were under pressure and traded in the doldrums today. Cost side, the manganese ore market remained firm, with traders showing strong confidence in holding prices firm, providing solid cost support for SiMn. Supply side, new capacity was put into operation at alloy plants in north China, but no iron output had been produced yet; iron output was expected to be released slowly later, which would increase supply-side pressure. In south China, overall operating rates remained relatively low, and supply releases were relatively stable. Spot SiMn prices in production areas fluctuated around the cost line, with significant pressure from losses. 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, the market was watching for the new round of steel tender prices, and spot SiMn prices were expected to remain in the doldrums in the short term.