The silicon manganese market is under pressure, and transactions are difficult to advance [SMM Silicon Manganese Daily Review].

As of Wednesday, SiMn 6517 (cash) in the north China market was quoted at 5,550–5,600 yuan/mt, down 25 yuan WoW; in the south China market, SiMn 6517 (cash) was quoted at 5,600–5,650 yuan/mt, flat WoW.

This week, the domestic SiMn alloy market continued in the doldrums, with overall market conditions under pressure.

Cost side, although coke prices fell by 50 yuan/mt, easing some cost pressure, the price of key raw material manganese ore remained firm—port traders showed little willingness to lower offers, coupled with higher quotations from overseas manganese mines, leaving limited downside room for manganese ore prices and providing core support for SiMn alloy costs. Production costs for SiMn alloy in north China showed no significant change; in Guangxi, however, due to peak-avoidance production policies, electricity prices rose about 0.1 yuan/kWh MoM, further increasing cost pressure on enterprises, so overall cost-side support for SiMn alloy did not weaken substantially.

Supply side, at the spot level, mills showed low willingness to offer retail quotations, preferring to wait for futures to rise before selling, leading to increased inventory pressure at plants. In north China, newly added SiMn capacity at alloy plants has been steadily put into operation and will gradually enter the iron output phase, which will further intensify market supply pressure. In south China, seasonal production cuts were more pronounced: in hydropower-based areas, as the rainy season ended, rising electricity prices drove up production costs, increasing the number of enterprises cutting output and leading to a noticeable drop in SiMn production; other grid-powered areas, affected by high electricity prices, have long relied on peak-avoidance production cuts, keeping output at low levels.

Demand side, in December, HBIS Group’s SiMn procurement saw both volume and price decrease: the finalized price was 5,770 yuan/mt (first round inquiry at 5,700 yuan/mt), down 50 yuan/mt from 5,820 yuan/mt in November; the procurement volume was 14,700 mt, down 1,300 mt from 16,000 mt in November. The simultaneous decline in volume and price from a key steel mill not only directly affected short-term market trading sentiment but also reflected cautious downstream demand, putting downward pressure on SiMn alloy prices.

Overall, the current SiMn market is characterized by high inventory, high supply, and low demand, resulting in price stalemate and difficult progress in actual transactions.