LONDON — European contract demand for most ferroalloys remains steady as consumers maintain their monthly volumes and frequently take their full allotments, market participants told AMM sister publication Metal Bulletin.

Long-term demand has been consistent in the markets for ferromolybdenum, ferrovanadium, ferrochrome and silicomanganese, even as spot markets have remained subdued and prices for noble and bulk alloys continue to fall, market sources said.

"Frame contracts are still being honored in full. German consumers drew all their quantity options for August," a ferromolybdenum trader told Metal Bulletin.

A ferrovanadium supplier agreed. "Everyone is taking up their full quantities," he said.

Volume tolerance clauses are written into many contracts, allowing consumers to reduce their volumes for specific periods to a set minimum if they feel they require less material and want to avoid building stocks.

But suppliers said they haven’t seen consumers reducing volumes to the minimum allowed.

"We haven’t heard of anyone cancelling volumes or declaring less volume. We’re not seeing anyone declaring the minimum if there is a tolerance," said a trader who works across several alloys markets.

Stainless steel mills in the region are taking at least their minimum contracted tonnages for ferrochrome, analysts from Sydney, Australia-based Macquarie Group Ltd. said in a note on Wednesday.

The ammonium paratungstate (APT) market, however, remains quiet, and many consumers are notably absent, sources said.

"I wish the same could be said for my APT customers; they’re declaring the minimum every month," one supplier said.