As of Wednesday this week, the price of SiMn 6517 (cash) in the north China market was 5,550-5,650 yuan/mt, down 25 yuan WoW; in the south China market, SiMn 6517 (cash) traded at 5,600-5,650 yuan/mt, also down 25 yuan WoW.
Cost side, the coke and manganese ore markets held up well, keeping overall SiMn costs firm.
Supply side, SiMn futures were under pressure and traded in a narrow range, with market sentiment leaning pessimistic. Alloy plants in north China maintained a normal production pace; the south China market, however, polarized: new high-silicon capacity came online in Hunan, while in Yunnan, most producers opted to cut production during off-peak hours and reduce output schedules due to cost increases from higher electricity prices during the dry season. Currently, factories showed little willingness to offer, transaction prices remained in the doldrums, most southern plants operated at a loss, and inventory pressure at producers edged up.
Demand side, as the off-season set in, HBIS's tender volume pulled back MoM, with the tender price flat MoM at 5,820 yuan/mt; steel mills showed little willingness to offer concessions on SiMn procurement, with most adopting a cautious stance.
Overall, the SiMn market is currently locked in a stalemate of "strong costs, weak demand." Supported by firm costs but pressured by downstream efforts to drive down prices, spot market adjustments were limited, though spot prices softened somewhat this week.
