SiMn futures fluctuate upward with limited upside room for price [SMM SiMn futures review]

SM2603 contract opened at 5,712 yuan/mt and finally closed at 5,730 yuan/mt, up 0.0%. The highest price was 5,738 yuan/mt and the lowest was 5,678 yuan/mt during the daytime session. Trading volume was 160,600 lots and open interest was 281,084 lots. The futures fluctuated upward today, but upside room for price increases was limited. Cost side, the manganese ore market remained firm, providing strong cost support for SiMn. Supply side, alloy plants in both northern and southern regions maintained stable operations. Spot SiMn prices in production areas were below most enterprises' cost levels, putting significant pressure on producers' profitability. Demand side, HBIS Group set its December SiMn price at 5,770 yuan/mt, up 70 yuan from the initial inquiry of 5,700 yuan/mt, but down significantly from November's price of 5,820 yuan/mt, indicating weak market sentiment for SiMn. The SiMn market is expected to remain weak in the short term.