SMM

【SMM Analysis：Downstream demand is weak, what is the price outlook for SiMn alloy?】In June 2024, the average cash price of SiMn alloy 6517 in the north China market was 8,042.11 yuan/mt, up 0.28% MoM; in the south China market, the average cash price was 8,142.11 yuan/mt, up 0.43% MoM. Entering July, most SiMn alloy producers have exhausted their low-price manganese ore inventory and need to purchase high-price manganese ore externally, leading to increased production costs and narrowed profit margins, even resulting in losses. Additionally, July marks the off-season for downstream steel mills, with current steel procurement volumes lower than in June. Due to the dual impact of reduced profit margins and the off-season for downstream steel mills, some SiMn alloy plants in both north and south China plan to reduce or halt production. For SiMn alloy prices in July, the majority of the market holds a bearish view. Most industry participants expect a bearish price outlook, mainly due to the impact of high temperatures in July, which is expected to increase the number of blast furnace shutdowns for maintenance in steel mills. The off-season for steel mills leads to weaker purchasing enthusiasm for SiMn alloy, and the price trend for SiMn alloy is likely to be weak.