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
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
havent seen consumers reducing volumes to the minimum
"We havent heard of anyone
cancelling volumes or declaring less volume. Were 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;
theyre declaring the minimum every month," one supplier