Do electricity prices support remain to be verified? SiMn futures fluctuate and pull back [SMM ferrosilicon manganese futures review]

January 26 news: The SM2605 contract opened at 5,870 yuan/mt and finally closed at 5,828 yuan/mt, down 0.41%. The daily highest price was 5,890 yuan/mt, and the lowest price was 5,824 yuan/mt. Trading volume was 132,400 lots, and open interest was 359,586 lots. SiMn futures fluctuated and pulled back today. Cost side, overall manganese ore transaction prices remained high, providing strong cost support for SiMn alloy prices; electricity prices in Inner Mongolia and south China for 2026 are under verification. Supply side, newly added SiMn furnaces in the main northern production areas started production earlier, increasing general silicon manganese capacity, with iron output commencing successively 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 fee preferential policies in Guangxi and Guizhou for 2026 needs verification, with most still maintaining off-peak production, and some plants choosing temporary shutdowns, awaiting the electricity fee settlement price by month-end. Loose SiMn supply pressure persists. Demand side, HBIS Group's January 2026 SiMn procurement volume was 17,000 mt, compared to December's volume of 14,700 mt, showing an increase; the SiMn price was set at 5,920 yuan/mt, up from December's price of 5,770 yuan/mt. Market sentiment remained mediocre. The current SiMn market continues to be dominated by volatile movement.