SiMn market in the doldrums HBIS' first round December inquiry at 5,700 yuan/mt [SMM SiMn Daily Review]

As of Wednesday this week, SiMn 6517 (cash) in the north China market was at 5,550-5,650 yuan/mt, flat WoW; SiMn 6517 (cash) in the south China market was at 5,600-5,650 yuan/mt, also flat WoW.

The SiMn market remained in the doldrums recently.

Cost side, the cost support for SiMn alloy remained strong, primarily driven by firm manganese ore prices. Recently, the core raw material manganese ore prices stayed firm, with high-grade oxidized ore showing particularly notable increases, averaging a rise of 1.2 yuan. The firm cost structure effectively underpinned alloy prices.

Supply side, in the futures market, SiMn futures continued to show weak trends recently, often characterized by "gaining at opening and pulling back at closing." Due to strong costs and weak demand, the upside and downside for futures were both limited. In the spot market, sentiment was pessimistic, with mills reluctant to offer retail quotations, mostly holding back from selling and waiting for futures to rise before offloading, leading to increased inventory pressure at plants. In north China, new SiMn capacity at alloy plants operated stably recently and will gradually start iron output, which will further increase supply pressure; in south China's Yunnan and other areas, affected by cost increases from higher electricity prices during the dry season, most plants opted for peak shaving and production cuts, reducing production schedules. Alloy plants in other regions maintained low operating rates, with production cuts occurring during the traditional off-season.

Demand side, the new round of steel mill tenders was gradually unfolding. HBIS Group's December SiMn procurement volume was 14,700 mt, down from 16,000 mt in November. HBIS Group's first round inquiry price for December SiMn was 5,700 yuan/mt, and the final tender price is still pending. The market generally held a wait-and-see sentiment.

Overall, the SiMn market continued in a stalemate of "strong costs and weak demand." The rigid support from the cost side and uncertainty on the demand side created a standoff, with the market overall showing strong wait-and-see sentiment, watching for the finalization of tender prices from mainstream steel mills in the short term.