Cost Support Remains Strong, SiMn Maintains Fluctuating Trend [SMM SiMn Futures Review]

January 21 news: The SM2605 contract opened at 5,798 yuan/mt and closed at 5,786 yuan/mt, down 0.24%. The daily highest price was 5,810 yuan/mt, and the lowest price was 5,766 yuan/mt. Trading volume was 135,400 lots, and open interest was 332,292 lots. SiMn futures showed a fluctuating trend today, with the price fluctuation range shifting downward. Cost side, overall manganese ore transaction prices saw a slight correction, but remained at high levels, providing strong cost support for SiMn alloy prices. Supply side, new SiMn furnaces in the main northern production areas started production earlier, increasing general SiMn capacity, with iron output commencing this month, adding to supply pressure. Operating rates at alloy plants in south China remained stably low. It is understood that the strength of electricity price preferential policies in Guangxi and Guizhou for 2026 remains to be verified, with most plants still maintaining off-peak production, and some choosing to temporarily halt production, awaiting the electricity price settlement at month-end. Loose SiMn supply pressure persists. Demand side, HBIS Group's January SiMn procurement volume was 17,000 mt, an increase compared to December's 14,700 mt; the SiMn price was set at 5,920 yuan/mt, up from December's 5,770 yuan/mt. Market sentiment remained mediocre. The current SiMn market continues to be dominated by volatile movement.