The SiMn market experienced volatile fluctuations, with a strong wait-and-see sentiment prevailing in the post-holiday market [SMM SiMn Futures Review].

Feb. 25 — SM2605 contract opened at 5,748 yuan/mt and closed at 5,752 yuan/mt, up 0.28%, with the highest price at 5,784 yuan/mt and the lowest at 5,736 yuan/mt. Trading volume was 140,400 lots, and open interest stood at 453,701 lots. Cost side, the manganese ore market continued to hold up well, providing core support for costs. Electricity prices showed significant regional divergence, becoming a key factor affecting the competitiveness of alloy plants in different production areas. Electricity prices in northern production areas are expected to remain low, offering notable cost advantages, while most southern production areas see no downside room for electricity prices. The coking coal and coke markets overall remained in the doldrums, exerting a mild impact on SiMn costs. Supply side, pressure from SiMn supply is set to further release, significantly restraining price rises. On one hand, alloy plants in Ningxia had already seen inventory accumulation before the holiday, and face considerable pressure to digest stocks after the holiday; on the other hand, some alloy plants in Inner Mongolia still have expectations to start production and resume production, and subsequent SiMn capacity release is expected to increase, gradually highlighting supply-side pressure, which is anticipated to constrain price increases. Demand side, February steel tender prices have not been announced, and the market is watching for the impact of tender pricing on the market.