SiMn Market in the Doldrums, HBIS Sets December SiMn Price at 5,770 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 recently remained in the doldrums.

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

Supply side, on the futures front, SiMn futures continued to trend weakly, often characterized by "gapping up at the open and pulling back by the close." Due to strong costs and weak demand, the upside and downside for futures were both limited. On the spot front, market sentiment for SiMn was relatively pessimistic, with mills reluctant to offer retail quotations, mostly holding back from selling and waiting for futures to surge before offloading, leading to increased inventory pressure at plants. In north China, new SiMn capacity at alloy plants recently operated stably, with iron output expected to gradually increase later, further intensifying supply pressure. In southern regions such as Yunnan, affected by rising electricity costs during the dry season, most plants opted for peak shaving and production cuts, reducing their production schedules. Alloy plants in other regions maintained low operating rates, with production cuts occurring during the traditional off-season.

Demand side, HBIS Group set its December SiMn price at 5,770 yuan/mt, with the first round inquiry at 5,700 yuan/mt, down 50 yuan MoM from the November price of 5,820 yuan/mt. The pricing in this mainstream steel tender provided little boost to the market.

Overall, the SiMn market currently continues in a stalemate of "strong costs and weak demand." The rigid support from the cost side and the uncertainty on the demand side are in a standoff, with the market expected to maintain a weak and stagnant trend in the short term.