Cost Support Remains; SiMn Alloy Plants Show Weak Willingness to Sell at Low Prices [SMM Analysis]

Published: Feb 14, 2025 16:14

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【SMM Analysis: Cost Support Remains, SiMn Alloy Plants Show Weak Willingness to Sell at Low Prices】 As of this Friday, the northern market price for SiMn alloy 65/17 (cash) was 6,200-6,500 yuan/mt, flat MoM; the southern market price for SiMn alloy 65/17 (cash) was 6,300-6,600 yuan/mt, also flat MoM. For February SiMn alloy prices, the majority of the market holds a bullish outlook. Most participants expect prices to rise, mainly due to disruptions in Gabon manganese ore shipments, which have strengthened miners' sentiment to stand firm on quotes. Manganese ore prices are expected to fluctuate upward. With enhanced cost support, SiMn alloy plants show weak willingness to sell at low prices, and SiMn alloy prices are expected to fluctuate upward. Some participants hold a bearish outlook, primarily because the overall supply of SiMn alloy remains high, while downstream steel mills provide limited demand support. Overall, the supply surplus of SiMn alloy has not changed, and prices are expected to fluctuate downward. A minority believes that prices will remain stable, mainly because SiMn alloy plants, supported by costs, are reluctant to sell at low prices. Downstream steel mills are cautious in purchasing SiMn alloy and tend to bargain down purchasing prices. Overall, the SiMn alloy market is in a tug-of-war between sellers and buyers, and prices are expected to remain stable.

SMM, February 14: As of this Friday, SiMn alloy 65/17 (cash) in north China was priced at 6,200-6,500 yuan/mt, flat MoM; in south China, it was priced at 6,300-6,600 yuan/mt, also flat MoM.

For February SiMn alloy prices, the majority of the market holds a bullish outlook. Most participants expect prices to rise, mainly due to disruptions in Gabon manganese ore shipments, which have strengthened miners' sentiment to stand firm on quotes. Manganese ore prices are expected to fluctuate upward. With stronger cost support, SiMn alloy producers show weaker willingness to sell at low prices, and SiMn alloy prices are also expected to fluctuate upward.

Some participants hold a bearish outlook, primarily because overall SiMn alloy supply remains high, while demand from downstream steel mills provides limited support. Overall, the supply surplus of SiMn alloy has not changed, and prices are expected to fluctuate downward.

A minority believe prices will remain stable, citing the current reluctance of SiMn alloy producers to sell at low prices due to cost support. Meanwhile, downstream steel mills are cautious in their SiMn alloy purchases, often bargaining down purchasing prices. Overall, the SiMn alloy market is in a tug-of-war between sellers and buyers, and prices are expected to remain stable.

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