SiMn Spot Prices Pulled Back Across the Board, Supply-Demand Imbalance Kept the Market in the Doldrums [SMM SiMn Daily Review]

As of Wednesday this week, the spot price of SiMn 6517 (cash) in the north China market was 5,900-6,000 yuan/mt, down WoW from last Wednesday; the spot price of SiMn 6517 (cash) in the south China market was 6,000-6,100 yuan/mt, down WoW from last Wednesday.

Currently, SiMn futures and spot prices were overall moving sideways within a mid-range band, and the short-term support of raw material costs for spot prices had somewhat loosened.

Cost side: Overseas manganese ore offers were cut again in June, and the short-term cost support for SiMn spot prices had somewhat loosened. However, arriving manganese ore remained in a high-cost price range, and producers' willingness to restock raw materials was overall mediocre. Electricity prices in Guangxi and Guizhou stayed high after the increase, with no expectations of decline. Following safety incidents at Shanxi coke operations, coke costs rose once again, highlighting cost pressure on producers.

Supply side: Operating rates of SiMn enterprises in both north and south China remained generally stable, with no significant fluctuations for the time being. Northern plants mostly operated on an order-based production model, while operating rates in the south were relatively lower. Overall industry supply saw limited changes, and finished product inventories stayed high. High destocking pressure exerted some downward pressure on SiMn futures and spot prices in the short term.

Demand side: End-use consumption of alloys was sluggish. Downstream procurement sentiment was weak overall, and steel mills and traders adopted a cautious restocking stance, making it difficult to effectively boost the SiMn market in the short term. HBIS Group's SiMn procurement volume for May 2026 was 8,500 mt, unchanged from April. The first-round inquiry was at 6,000 yuan/mt, with the final pricing at 6,050 yuan/mt, indicating a clear sentiment from steel mills to push for lower prices.

In the short term, the market is expected to remain in the doldrums amid ample supply and weak demand.