The SiMn market was under pressure, fluctuating rangebound. [SMM SiMn Daily Review]

As of Wednesday, SiMn 6517 (cash) in the north China market was at 5,550-5,600 yuan/mt, flat WoW; in the south China market, SiMn 6517 (cash) was at 5,600-5,650 yuan/mt, up 20 yuan WoW.

This week, the domestic SiMn alloy market overall operated under pressure, continuing its rangebound trend. Manganese ore prices remained consolidated at high levels, with firm prices providing core cost support, gradually narrowing the downside room for SiMn prices. However, downstream steel mills adopted a price-pushing mentality. Amid the supply-demand tug-of-war, the SiMn market exhibited a stalemate pattern.

Cost side, coke prices fell 50 yuan/mt this week, alleviating some cost pressure, but the core raw material manganese ore prices remained firm—port traders showed weak willingness to offer discounts, coupled with raised quotations for forward manganese ore from mines, leaving limited further downside room for manganese ore prices, thus forming core support for SiMn alloy costs. In north China, SiMn alloy production costs showed no significant change; in Guangxi's Guilin area, however, due to peak-avoidance production policies, peak-avoidance electricity fees rose about 0.1 yuan/kWh MoM, further increasing factory production cost pressures. Overall, cost-side support for SiMn alloy did not substantially weaken.

Supply side, at the spot level, factories 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, an alloy plant in Inner Mongolia is expected to commence SiMn production by month-end, which will further intensify market supply pressure. In south China, seasonal production cuts were more pronounced: in hydropower regions, as the rainy season ended, rising electricity prices drove up production costs, increasing the number of enterprises cutting production, resulting in a significant drop in SiMn output; other grid-power regions, affected by high electricity prices, mainly maintained peak-avoidance production cuts long-term, keeping output consistently at low levels.

Demand side, steel mills continued to push for lower prices during the production off-season, restraining any rebound in SiMn prices: downstream steel mill tender pricing was generally weak, market sentiment was cautious, purchase willingness leaned conservative, mainly purchasing as needed, directly pressuring SiMn alloy market prices and failing to provide effective demand support.

Overall, recent SiMn fundamentals are relatively stable, with no significant sentiment-driven movements. The overall market is stagnant, prices are temporarily steady, and the SiMn alloy market is expected to fluctuate rangebound this month.