NEW YORK Discussions over
next years ferroalloys contracts are entering the final
stretch, with long-term agreements for some material already
Deals are again mainly being
based on discounts to published numbers, sources said. Bulk
alloy discounts so far are either steady or larger than those
for 2012, while the direction on noble alloys is less
"Theres maybe slight
pressure to the downside on the bulks," according to one
Buyers of silicomanganese and
ferrochrome, in particular, reported greater discounts for 2013
than in 2012.
"Chrome is a little bit of a
surprise and so is silicomanganese," one buying source
A second buying source also
confirmed that he had received offers of greater discounts for
next years silicomanganese.
Ferrochrome market "discounts
seem to be slightly higher this year (for 2013 material) than
last," one high-carbon ferrochrome trader agreed, adding that
this was likely due to increased competition from foreign
suppliers for long-term business.
Most long-term deals with large
consumers of ferrosilicon and medium- and low-carbon
ferromanganese have yet to be concluded, sources said, although
one ferrosilicon supplier said he had done a significant amount
of his long-term deals at similar levels to 2012.
Meanwhile, in the ferrovanadium
market, sources agreed that discounts for next years
contracts could be lower, although little business has been
concluded so far.
"Producers are not as generous
(with discounts) this time. Theres been so much given
away in the past that some are saying this is kind of
ridiculous," one market source said.
Reports on long-term molybdenum
agreements were mixed, with the first buying source reporting
long-term business concluded at lower discounts for molybdic
oxide and ferromolybdenum than in 2012, while a producer source
said he saw discounts for ferromolybdenum contracts rising due
to more competition from foreign suppliers.