Cost Support Temporarily Stabilizes SiMn Futures Pull Back [SMM SiMn Futures Review]

January 27: The SM2605 contract opened at 5,810 yuan/mt and closed at 5,818 yuan/mt, down 0.72%. The daily highest price was 5,842 yuan/mt, and the lowest price was 5,806 yuan/mt. Trading volume was 103,900 lots, and open interest was 371,448 lots. SiMn futures fluctuated and pulled back today. Cost side, overall manganese ore transaction prices remained high and the market was temporarily stable, providing strong cost support for SiMn alloy prices. The cost support from Inner Mongolia regional electricity prices and south China electricity prices for alloy production in 2026 is under verification. Supply side, recently, new SiMn furnaces started production in the main northern production areas, increasing general SiMn capacity and adding supply pressure. Operating rates at southern alloy plants remained stably low. It is understood that the strength of electricity fee preferential policies in Guangxi and Guizhou for 2026 needs verification, with most plants still maintaining off-peak production, and some choosing temporary shutdowns, awaiting the electricity fee settlement price by month-end. Loose SiMn supply pressure persists. Demand side, HBIS Group's January SiMn procurement volume was 17,000 mt, up from 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. Currently, the SiMn market continues to be dominated by volatile movement.