As of this Wednesday, the 6517 silicon manganese (cash) in the northern market was 5,525-5,625 yuan/mt, down 25 yuan WoW from last Wednesday; in the southern market, it was 5,575-5,625 yuan/mt, also down 25 yuan WoW from last Wednesday.
Cost side, coke and manganese ore prices remained stable at relatively high levels, keeping the overall cost of silicon manganese firm.
Supply side, the silicon manganese futures were under pressure and fluctuating, with the market sentiment being mainly pessimistic. Alloy plants in north China maintained a normal production schedule; in Yunnan and other areas in south China, due to the increased costs from higher electricity prices during the dry season, most manufacturers chose to cut production and reduce their production schedules, while operations in other regions remained at low levels. Currently, factories are reluctant to sell at low prices, transaction prices remain in the doldrums, and most factories are operating at a loss, leading to an increase in inventory pressure.
Demand side, entering the off-season, HBIS's tender volume for this month has pulled back MoM, with the tender price at 5,820 yuan/mt, flat MoM. Steel mills are not willing to offer more favorable terms for purchasing silicon manganese, and most have adopted a cautious procurement attitude.
Overall, the current silicon manganese market is in a stalemate characterized by "strong costs and weak demand." Due to the firm costs and downstream efforts to drive down prices, adjustments in the spot market are limited, and this week, spot prices have shown some softening.
